Welcome to NASDAQtrader.com for Options and Futures
Search:
   

Wednesday, March 10, 2010

Options Technical Update #2010 - 7
NASDAQ OMX PHLX Provides Guidance on Handling GTC Orders During OSI Consolidations

Markets Impacted:

  • NASDAQ OMX PHLX

Contact Information:

What you need to know:

  • Class consolidations for the Options Symbology Initiative (OSI) begin on Friday, March 12, 2010, and are scheduled to complete on Friday, May 14, 2010.
  • As part of this process, option symbols in those classes to be consolidated will be converted into their OSI-compliant format — in most cases, the same as the underlying symbol name.
  • During weekend consolidation, NASDAQ OMX PHLX will not convert any open GTC orders in the affected classes to the consolidation format.
  • Firms should cancel their GTC orders in those symbols in the classes being consolidated no later than 5:00 p.m., ET, on the Friday of the consolidation event and re-enter them on Monday morning beginning at 7:30 a.m., ET.
  • Any orders not cancelled by the firms will be cancelled by PHLX.

What are the Options Symbology Initiative consolidation events?

Class consolidations for the Options Symbology Initiative (OSI) begin on Friday, March 12, 2010, and are scheduled to complete on Friday, May 14, 2010. As part of the consolidation process, option symbols in those classes to be consolidated will be converted into their OSI-compliant format — in most cases, the same as the underlying symbol name.

The OSI consolidation is currently scheduled for the following dates:

  • Friday, March 12, 2010 – Effective for Monday, March 15, 2010
  • Friday, April 9, 2010 – Effective for Monday, April 12, 2010
  • Friday, April 23, 2010 – Effective for Monday, April 26, 2010
  • Friday, May 7, 2010 – Effective for Monday, May 10, 2010
  • Friday, May 14, 2010 – Effective for Monday, May 17, 2010

For complete details of the OSI plan and implementation dates, refer to the Options Clearing Corporation (OCC) website.

Are Good-Till-Cancelled orders affected by the consolidation events?

Yes. During weekend consolidation, NASDAQ OMX PHLXSM (PHLX®) will not convert any open GTC orders in the affected classes to the consolidation format. Firms should cancel their GTC orders in symbols that will undergo consolidation.

When can GTC orders be cancelled?

Firms are reminded that GTC orders in the symbols affected by the weekend consolidations can be cancelled at any time during normal system hours. On the Friday of a consolidation weekend, firms can also cancel their GTC orders after market close at 4:15 p.m., Eastern Time (ET), and up through 5:00 p.m., ET. Firms are reminded of the following information regarding cancelling of their GTC orders:

  • Cancellations must be “straight cancels,” not cancel/replacements.
  • Firms that send a cancel request will receive the normal response to their cancel via their FIX interface (Tag 150 will have a value of “4”).
  • Firms should carefully verify all orders have been properly cancelled based on these responses.
  • Firms should contact PHLX System Support at +1 215 496 1571 immediately if they believe they did not receive a response to a cancel.
  • If a firm is set up to receive open order reports with the exchange, the cancelled or deleted orders will not appear on the open order report.

Will PHLX cancel any remaining orders that have not been cancelled?

Yes. At approximately 5:00 p.m., ET, PHLX will begin cancelling any remaining GTC orders in those symbols that are being consolidated that weekend.

What notification or messaging is available for those orders being cancelled by PHLX?

Firm lines will remain connected until 5:30 p.m., ET. If a firm is still connected during that period, they will receive an unsolicited out for those orders being cancelled by the exchange.

Firms can also request to be provided with a report of all orders cancelled by the exchange. The request must be made by close of business on the Wednesday of the consolidation weekend (i.e. March 10th for March 12th consolidation). Reports will be available at approximately 6:00 p.m., ET.

The request can be made through email to PHLX Market Operations or by contacting Rene Warrington at +1 215 496 5101.

When can cancelled orders be re-entered?

All orders, including GTCs, can be entered into the system beginning at 7:30 a.m., ET, on the Monday morning following a consolidation weekend.

Where can I find more information?


Email Alert Subscriptions:
Nasdaq offers customers the ability to self select news delivery across various Nasdaq markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the Nasdaq Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding Nasdaq's trading and data products, regulatory issues or marketplace initiatives. To unsubscribe, also click on the enrollment form

Please follow Nasdaq on Facebook RSS and Twitter.

Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.

View NASDAQTrader.com Mobile