Obvious Error Submission



Online Submission Form

*Indicates Required Field

*Market Center:
*Root Symbol:Strike Price:    
Expiration Date: (MM/DD/YYYY)
*Your Firm's MPID:
*Contact Name:
*Contact Phone/Extension:
Contact Email:
*Total Number of Contracts Executed:
*Execution Time From:::*To:::
*Transaction Price Range From:*To:
*Error Type:
*Error Details:
Document:
(.txt, .doc, .docx, .pdf, .jpg, .gif, .xls, .xlsx, .csv,.htm, .html files only. ) The file size must be < 3 MB.
 
Question:What is 60 + 22 ? (Example: 11 + 22 = 33)
*Answer: Please enter only the answer for the question shown above
 

Guidelines for Obvious Filing Submission for Nasdaq PHLX/NOM/BX

Documentation

  • Market participants may file a request electronically. If there are problems with an electronic submission, please call 215.496.5295
  • All submissions must include all of the requested supportive information, or it will be considered deficient and not accepted.

Deadline

  • Submissions must be received for non-customer orders (B/D, Firm and Pro Customer), Specialists, ROTs, SQTs and RSQTs within 15 minutes of the execution time.
  • Submissions must be received for customer orders within 30 minutes of the execution time.

The Exchange may nullify a transaction, adjust the execution price of a transaction that results in an Obvious Error, or rule that a transaction shall stand as executed.

Definition of Obvious Error

An Obvious Error will be deemed to have occurred when the execution price of a transaction is higher or lower than the Theoretical Price for a series by an amount equal to at least the amount shown below:

For equity, index, ETF and currency options


Theoretical price Minimum Amount
Below $2.00 $0.25
$2 - $5 $0.40
Above $5 - $10 $0.50
Above $10 - $20 $0.80
Above $20 - $50 $1.00
Above $50 - $100 $1.50
Above $100 $2.00

Determination of Theoretical Price:

Upon receipt of a request for review and prior to any review of a transaction execution price, the “Theoretical Price” for the option must be determined. For purposes of this Rule, if the applicable option series is traded on at least one other options exchange, then the Theoretical Price of an option series is the last NBB just prior to the trade in question with respect to an erroneous sell transaction or the last NBO just prior to the trade in question with respect to an erroneous buy transaction unless one of the exceptions in sub-paragraphs (b)(1) through (3) below exists. For purposes of this provision, when a single order received by the Exchange is executed at multiple price levels, Theoretical Price for the execution at the initial price level will be the last NBB and last NBO just prior to the Exchange’s receipt of the order, and the Theoretical Price for all subsequent executions at other price levels will be determined by the Exchange.

Transactions at the Open. For a transaction occurring as part of the Opening Process (as defined by PHLX Rule 1017) the Exchange will determine the Theoretical Price if there is no NBB or NBO for the affected series just prior to the erroneous transaction or if the bid/ask differential of the NBB and NBO just prior to the erroneous transaction is equal to or greater than the Minimum Amount set forth in the chart contained in sub-paragraph (b)(3) below. If the bid/ask differential is less than the Minimum Amount, the Theoretical Price is the NBB or NBO just prior to the erroneous transaction.


Bid Price at Time of Trade Minimum Amount
Below $2.00 $0.75
$2 - $5 $1.25
Above $5 - $10 $1.50
Above $10 - $20 $2.50
Above $20 - $50 $3.00
Above $50 - $100 $4.50
Above $100 $6.00

No Valid Quotes. The Exchange will determine the Theoretical Price if there are no quotes or no valid quotes for comparison purposes. Quotes that are not valid are all quotes in the applicable option series published at a time where the last NBB is higher than the last NBO in such series (a “crossed market”), quotes published by the Exchange that were submitted by either party to the transaction in question, and quotes published by another options exchange against which the Exchange has declared self-help.

Wide Quotes. The Exchange will determine the Theoretical Price if the bid/ask differential of the NBB and NBO for the affected series just prior to the erroneous transaction was equal to or greater than the Minimum Amount set forth below and there was a bid/ask differential less than the Minimum Amount during the 10 seconds prior to the transaction. If there was no bid/ask differential less than the Minimum Amount during the 10 seconds prior to the transaction then the Theoretical Price of an option series is the last NBB or NBO just prior to the transaction in question, as set forth in paragraph (b) above.


Bid Price at Time of Trade Minimum Amount
Below $2.00 $0.75
$2 - $5 $1.25
Above $5 - $10 $1.50
Above $10 - $20 $2.50
Above $20 - $50 $3.00
Above $50 - $100 $4.50
Above $100 $6.00

Additional Information

  • Obvious Error Policy
  • Nasdaq MarketWatch at 800.211.4953 or 301.978.8501.
  • Nasdaq PHLX at 215.496.5295 or 1-800-THE-PHLX, #9