Obvious Error Submission

Guidelines:  NASDAQ Options Market | NASDAQ OMX PHLX

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 49 + 60 ? (Example: 11 + 22 = 33)
*Answer: Please enter only the answer for the question shown above
 

Guidelines for Obvious Filing Submission for NASDAQ Options Market

Documentation

  • Market participant must file a request electronically. If there are problems with an electronic submittal, please print this form and fax to 301.978.8511. A phone call is not necessary prior to filing.
  • A filing must include all of the requested supportive information, or it will be considered deficient.

Deadline

  • Filings must be received electronically within 20 minutes of execution time.

Definition of Obvious Error

  1. The execution price of a transaction is higher or lower than the Theoretical Price for the series by an amount equal to at least the amount shown below:

  2. Inside Price Minimum Amount
    Below $2.00 $0.25
    $2 - $5 $0.40
    Above $5 - $10 $0.50
    Above $10 - $20 $.80
    Above $20 $1.00

  3. The trade resulted in an execution price in a series that was, and for five seconds prior to the execution remained, quoted no bid and at least one strike price below (for calls) or above (for puts) in the same class were quoted no bid at the time of the erroneous execution (in which case the trade shall be nullified).For purposes of this subparagraph, bids and offers of the parties to the subject trade that are in any of the series in the same options class shall not be considered.

Defintion of Theoretical Price

For purposes of this Section only, the Theoretical Price of an option series is:

  • If the series is traded on at least one other options exchange, the mid-point of the National Best Bid and Offer ("NBBO"), just prior to the transaction; or
  • If there are no quotes for comparison purposes, as determined by MarketWatch

Guidelines for Obvious Filing Submission for NASDAQ OMX PHLX

Documentation

  • Market participants may file a request electronically. If there are problems with an electronic submission, please call 215.496.5295 or 1-800-THE-PHLX, #9.
  • 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 Specialists, ROTs, SQTs and RSQTs within 15 minutes of the execution time.
  • Submissions must be received for Customer, Firm and B/D off-floor orders within 20 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 and index options


Theoretical price Minimum Amount
Below $2.00 $0.25
$2 - $5 $0.40
Above $5 - $10 $0.50
Above $10 - $20 $.80
Above $20 $1.00

For foreign currency options other than the Japanese yen


Theoretical price Minimum Amount
Below $ .02 (expressed as 2) $.0025 (expressed as .25)
$.02 to $.05 (expressed as 2 to 5) $.004 (expressed as .40)
Above $.05 to $.10 (expressed as 5 to 10) $.0050 (expressed as .50)
Above $.10 to $.20 (expressed as 10 to 20) $.0080 (expressed as .80)
Above $.20 (expressed as 20) $.0100 (expressed as 1.00)

For foreign currency options on the Japanese yen


Theoretical price Minimum Amount
Below $ .0002 (expressed as 2) $.000025 (expressed as .25)
$.0002 to $.0005 (expressed as 2 to 5) $.00004 (expressed as .40)
Above $.0005 to $.0010 (expressed as 5 to 10) $.000050 (expressed as .50)
Above $.0010 to $.0020 (expressed as 10 to 20) $.000080 (expressed as .80)
Above $.0020 (expressed as 20) $.000100 (expressed as 1.00)



Definition of Theoretical Price:

The Theoretical Price of an option is:
  • If the series is traded on at least one other options exchange the last National Best Bid price with respect to an erroneous sell transaction and the last National Best Offer price with respect to an erroneous buy transaction, just prior to the trade;
  • if there are no quotes for comparison purposes, or if the bid/ask differential of the National Best Bid and Offer ("NBBO") for the affected series, just prior to the erroneous transaction, was at least two times the permitted bid/ask differential under Rule 1014(c)(1)(A)(i)(a), as determined by an Options Exchange Official; or
  • for transactions occurring as part of the Exchange's automated opening system, the Theoretical Price shall be the first quote after the transaction(s) in question that does not reflect the erroneous transaction(s).

Additional Information

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