Essay on Test

659 Words Dec 25th, 2015 3 Pages
#37919

DATE:

DECEMBER 1, 2015

SUBJECT:

TRADING HALTS WEEKLY UPDATE - REMOVAL FROM EX BY EX
PROCESSING

RE:

EQUITY OPTION EXPIRATIONS

As of December 1, 2015, trading has been halted in the underlying securities listed below, or events have occurred which have prompted OCC to remove options on such securities from automatic exercise in expiration processing. If the issues surrounding these events are not resolved prior to the expiration date for the affected options, these options will not be subject to OCC’s automatic exercise thresholds in expiration processing. If OCC becomes aware that the issues have been resolved, automatic exercise thresholds will be restored prior to expiration.
Please note the removal of automatic thresholds
…show more content…
The expiring positions in the affected series can be located by inquiring on the option symbol in the ENCORE Exercise By Exception Instructions Filter. When all expiring positions for the filtered symbol are returned, Clearing Members will notice that none are subject to automatic exercise,

regardless of how much they may appear in-the-money. An underlying security price will be shown, but
Members should not view this price as a reliable estimate of underlying security value, which is sufficient to determine exercise decisions. In order to exercise these positions, the Clearing Member user will need to enter the desired quantity in the Exer Instr column. Repeat the process for all symbols listed above.
OCC will exercise the final quantity in the Will Be column of the Exercise by Exception Instruction screen.
RESUMPTION OF TRADING
As mentioned, if trading in any of the above underlying securities resumes, automatic exercise threshold procedures will apply in expiration processing.
OCC will notify Clearing Members via Information Memos and Member Radar if trading in any of the securities listed above does resume prior to expiration.
OCC will publish a summary of all halted underlying securities and special option pricing considerations in the "EXPIRATION PRICES" Information Memo which is customarily posted after the close on expiration
Friday for those options expiring on

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