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Product LoginMonday, August 30, 2010
Options Regulatory Alert #2010 - 15
NASDAQ OMX PHLX New Electronic Procedure for Obvious and Catastrophic Error Trade Review Submissions
Markets Impacted:
Contact Information:
- Michael Blackson, PHLX On-Floor Surveillance, at +1 215 496 5295
What you need to know:
- Effective Tuesday, September 7, 2010, NASDAQ OMX PHLXSM (PHLX®) Options Exchange Officials (OEOs) will only accept obvious error and catastrophic error trade review requests electronically through the NASDAQ OMX® Obvious Error Submission Form and will no longer accept verbal communication or phone calls regarding obvious or catastrophic error trade reviews.
What is the procedure for submitting a trade review?
Effective Tuesday, September 7, 2010, PHLX OEOs will only accept obvious error and catastrophic error trade review requests electronically through the NASDAQ OMX Obvious Error Submission Form. Starting September 7th, PHLX OEOs will no longer accept verbal communication or phone calls regarding obvious or catastrophic error trade-reviews.
All participants are required to specify the trades in question and include the following details: firm or account identifiers, underlying symbol, time, price, volume, expiration month and strike price. Unless the Exchange acts on its own motion to review trades deemed erroneous, OEOs will only review the trades attached or listed on the submission form.
Failure to comply with these procedures may delay or negate the acceptance of the submission.
Is there a time limit for obvious error trade review submissions?
The time notification period for participants to submit an obvious error trade review request is as follows:
- Specialists, Registered Options Traders (ROTs), Streaming Quote Traders (SQTs) or Remote Streaming Quote Traders (RSQTs) on the Exchange must notify regulatory staff within 15 minutes of the transaction.
- Members or member organizations that initiated the order from off the floor of the Exchange must notify regulatory staff within 20 minutes of the execution.
Absent unusual circumstances, regulatory staff will not grant relief unless notification is made within the prescribed time period. Refer to NASDAQ OMX PHLX Rule 1092(e)(i)(A), “Notification,” for details regarding transactions that occur as part of PHLX’s automated opening process.
Is there a time limit for catastrophic error trade review submissions?
The time notification period for participants to submit a catastrophic error trade review request is as follows:
- Exchange members must notify Market Surveillance by 8:30 a.m., Eastern Time (ET), on the first trading day following the date on which the catastrophic error occurred.
- For transactions in an expiring options series that take place on an expiration day, Exchange members must notify the Exchange by 5:00 p.m., ET, that same day.
Where can I find more information?
- Refer to NASDAQ OMX PHLX Rule 1092.
- Refer to the NASDAQ OMX Obvious Error Submission Form.
- Contact Michael Blackson, PHLX On-Floor Surveillance, at +1 215 496 5295.
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