Auto-exercise/assignment at expiration

Don't believe everything you read,including what I said..

Check with your clearing agent.

I know for a fact that you are wrong...


TheDawn said:
Options exchanges have a final cutoff of 4:30 PM CST or 5:30 PM EST to receive exercise requests and that applies to everybody no matter how "big" the firm is. They do not have until 7 or 8. PM to send in exercise requests. https://www.optionseducation.org/referencelibrary/faq/options-exercise, also specified by FINRA: https://www.finra.org/rules-guidance/notices/information-notice-020321#:~:text=FINRA reminds members that option,or not exercise the option. But retails have to send in exercise requests lot earlier than that, usually at 4:15 or latest 4:30 PM EST depending on the broker. For IB, I believe it's 4:15 PM EST.
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taowave said:
Don't believe everything you read,including what I said..

Check with your clearing agent.

I know for a fact that you are wrong...
More...

What I posted here are rules from official organizations and regulatory bodies regarding exercising options and my own personal experience. Perhaps you can show us a case where the institutions can have until 7 or 8:00 PM EST to exercise options according to prices in ATH trading to prove your "facts".
 
I believe the rule requires the member clearing firm to file any early exercise, exception or Do not exercise on expiration by 5:30pm est to the OCC through electronic transmission. Because there is always a process in place at the clearing broker, the customer must submit that well before that time, to give the clearing broker time to review and submit these. When I was a MM and cleared GSEC, the latest they would except this is 5pm est. When it was the day before X-DIV, 4:30pm est and it required a different hand written form that required a phone call to confirm receipt. IMO, there is no process in place after 5:30pm est, even at a self clearing BD with a trade desk.
 
I have exercised up until 5...

I'll put you on touch with the head of derivatives at Goldman.Im sure he will be more than happy to clear up any confusion



TheDawn said:
What I posted here are rules from official organizations and regulatory bodies regarding exercising options and my own personal experience. Perhaps you can show us a case where the institutions can have until 7 or 8:00 PM EST to exercise options according to prices in ATH trading to prove your "facts".
More...
 
taowave said:
I have exercised up until 5...

I'll put you on touch with the head of derivatives at Goldman.Im sure he will be more than happy to clear up any confusion
More...

5:00 PM is fine. That's within FINRA's requirement. But 7 or 8?!! That's far-fetched. I don't care if it's Goldman Sachs. That's just not possible. FINRA, the regulatory body that regulates the entire industry says that it requires its members to submit exercise instructions by 5:30 PM EST. How can they still submit exercise requests by 8 PM?!!
 
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