The sequence for handling and routing of an options order ticket for execution is
the firm’s trading desk to the member firm booth to the floor broker for execution
Contrary Exercise Advice (CEA)
By filing a CEA, the customer can instruct the OCC not to exercise certain in-the-money contracts and allow them to expire worthless.
The customer can also instruct the OCC to exercise certain out-of-the money contracts that would expire worthless. Same applies with at the money contracts.
What is the deadline for the firm to submit a CEA for a customer?
5:30pm EST, on the third Friday of the expiration month
Advice Cancel
Cancels a CEA, needs to be submitted anytime up until 5:30pm EST on the business day immediately prior to the expiration date.
When an option class adjusts for a stock split, merger, other corp actions, all of the contracts are adjusted by…
Options Clearing Corporation (OCC)
Delivery versus payment (DVP) is a form of
equity settlement between broker-dealers in which delivery will occur provided there is payment.
Financial Information exchange (FIX) is a secure electronic
protocol that computers use to route information between member firms.
