Prioridad u órdenes de clientes profesionales

En el cuarto trimestre de 2009, ciertos mercados de opciones estadounidenses (CBOE, ISE) implementaron normas que sirven para distinguir órdenes que se originen de un grupo de clientes públicos considerados "profesionales" (es decir, personas físicas o jurídicas que tengan acceso a información o tecnología que les permita operar como un bróker-díler), en contraste con minoristas.  De acuerdo con estas reglas, cualquier cuenta de cliente que no sea de bróker- díler y que introduzca más de 390 órdenes de opciones cotizadas (tanto si se ejecutan como si no) en un promedio diario entre todos los mercados de opciones en un mes dado para beneficio de sus propias cuentas serán clasificadas como Profesional. Desde la implementación original por parte de CBOE y ISE, la mayoría de los mercados de opciones estadounidenses han implementado de forma similar normas para distinguir órdenes "profesionales" en su origen.

Las órdenes enviadas en nombre de clientes profesionales a estos mercados de opciones se tratarán de la misma forma que las órdenes de brókeres-díleres a efectos de prioridad de ejecución y estarán sujetas a una tarifa de transacción por contrato que podrá variar entre reducciones de ($0.65) hasta un cargo de $1.12 (dependiendo de la clase de opciones). 

Los brókeres deben realizar una revisión de forma trimestral para identificar a aquellos clientes que hayan excedido el umbral de las 390 órdenes para cualquier mes de dicho trimestre y que deban ser considerados profesionales para el siguiente trimestre natural. Tenga en cuenta que, a efectos de esta norma, las órdenes de diferencial se consideran una sola orden, en lugar de considerar cada tramo del diferencial como una orden separada. Los clientes afectados por estas normas serán notificados por IB.  Además, el enrutado Smart de IB está diseñado para tomar estas tarifas de mercado en consideración al realizar las decisiones de enrutado.

Para ver detalles adicionales, consulte los siguientes enlaces:

ISE Regulatory Circular 2009-179

CBOE Regulatory Circular RG09-148

Priorità od ordini di clienti professionali

Nel quarto trimestre del 2009 determinate Borse delle opzioni statunitensi (CBOE, ISE) hanno applicato disposizioni volte a contraddistinguere gli ordini provenienti da un gruppo di clienti pubblici ritenuti "professionali" (ovvero, soggetti o entità aventi accesso a informazioni e/o risorse tecnologiche che consentono loro di negoziare con le stesse modalità impiegate dagli operatori indipendenti) da quelli dei clienti retail.  Secondo quanto previsto da tali disposizioni, tutti i conti dei clienti che non siano operatori indipendenti, e che in un determinato mese immettano una media giornaliera di oltre 390 ordini di opzioni quotate (eseguiti o meno) tra tutte le Borse delle opzioni a vantaggio del/i proprio/i conto/i, saranno classificati come "professionali". Dal momento dell'attuazione iniziale da parte del CBOE e dell'ISE, la maggior parte delle altre Borse delle opzioni statunitensi ha introdotto disposizioni analoghe per contraddistinguere gli ordini aventi provenienza "professionale".

Ai fini della priorità di esecuzione, gli ordini inviati a tali Borse delle opzioni a nome dei clienti ritenuti "professionali" saranno trattati alla stregua degli ordini degli operatori indipendenti; inoltre, saranno soggetti a una commissione di transazione per contratto compresa tra storni di ($0.65) e una tariffa di $1.12 (a seconda della categoria delle opzioni). 

I broker sono tenuti a condurre una verifica trimestrale per identificare i clienti che eccedono la soglia dei 390 ordini in ciascun mese di tale trimestre e devono essere classificati come "professionali" per il trimestre successivo. Si prega di notare che, ai fini di tale disposizione, le singole componenti dello spread non sono considerate ordini singoli, bensì ciascun ordine di spread costituisce in sé un ordine unico. IB provvederà a informare i clienti coinvolti da tali disposizioni.  Si ricorda, inoltre, che il sistema di indirizzamento SmartRouting di IB è progettato per tenere in considerazione tali nuove commissioni di Borsa al momento della scelta dell'indirizzamento.

Per maggiori dettagli, si prega di fare riferimento ai seguenti link:

Circolare regolamentare 2009-179 dell'ISE

Circolare regolamentare RG09-148 del CBOE

優先級或專業客戶定單

2009年4季度,一些美國期權交易所(CBOE;ISE)實施細則將來自被視為“專業”(即擁有的信息和/或技術能供其同經紀交易商一樣進行交易的個人或實體)的一批公眾客戶的定單與零售客戶區分開來。根據該等細則,任何不是經紀交易商且在給定月份為自己的受益賬戶在所有期權交易所下達的日平均期權定單數超過390(無論執行與否)的客戶賬戶都將被分類為專業。自CBOE和ISE最先實施以來,大多數其他美國期權交易所也執行了類似細則將定單區分為“專業”。

代專業客戶提交至這些期權交易所的定單在執行優先級方面與經紀交易商待遇相同,且會產生交易費用,從($0.65)的折扣到$1.12的費用不等(取決於期權類別)。 

經紀商需每個季度進行一次審查,確定該季度內哪些客戶超過了390個定單的臨界值以及哪些客戶將在下一個季度被指定為專業。請注意,就該等細則而言,價差定單被視為單個定單,而不是每條邊作一個定單。IB將會向受該等細則影響的客戶發出通知。此外,IB的智能定單傳遞在做出傳遞決定時也會將這些新的交易所費用考慮在內。

更多詳細信息,請參見以下鏈接:

ISE監管通告2009-179

CBOE監管通告RG09-148

优先级或专业客户定单

2009年4季度,一些美国期权交易所(CBOE;ISE)实施细则将来自被视为“专业”(即拥有的信息和/或技术能供其同经纪交易商一样进行交易的个人或实体)的一批公众客户的定单与零售客户区分开来。根据该等细则,任何不是经纪交易商且在给定月份为自己的受益账户在所有期权交易所下达的日平均期权定单数超过390(无论执行与否)的客户账户都将被分类为专业。自CBOE和ISE最先实施以来,大多数其他美国期权交易所也执行了类似细则将定单区分为“专业”。

代专业客户提交至这些期权交易所的定单在执行优先级方面与经纪交易商待遇相同,且会产生交易费用,从($0.65)的折扣到$1.12的费用不等(取决于期权类别)。 

经纪商需每个季度进行一次审查,确定该季度内哪些客户超过了390个定单的临界值以及哪些客户将在下一个季度被指定为专业。请注意,就该等细则而言,价差定单被视为单个定单,而不是每条边作一个定单。IB将会向受该等细则影响的客户发出通知。此外,IB的智能定单传递在做出传递决定时也会将这些新的交易所费用考虑在内。

更多详细信息,请参见以下链接:

ISE监管通告2009-179

CBOE监管通告RG09-148

Priorité ou ordres de clients professionnels

Fin 2009, certaines Bourses d'options américaines (CBOE, ISE) ont instauré des règles visant à distinguer les ordres provenant d'un groupe de clients publics considérés non pas comme des particuliers mais comme des "Professionnels" (des personnes ou entités qui ont accès aux informations et/ou à la technologie leur permettant de trader de la même manière qu'un courtier-négociateur). Conformément à ces règles, tout compte client qui n'est pas un courtier négociateur et qui passe en moyenne plus de 390 ordres d'options cotées par jour (qu'elles soient exécutées ou pas) sur l'ensemble des marchés d'options pour un mois donné, sera considéré comme un Professionnel. Depuis l'instauration de cette règle par la CBOE et l'ISE, la plupart des marchés d'options ont mis en place des procédures similaires afin de distinguer les ordres émanant de "Professionnels".

Les ordres soumis au nom de clients professionnels sur ces Bourses d'options seront traités, en termes de priorité d'exécution, comme s'ils émanaient de courtiers négociateurs. Ils seront par ailleurs soumis à des frais de transaction par contrat allant de remises de ($0.65) à des frais de $1.12 en fonction des classes d'options. 

Les courtiers sont tenus de vérifier tous les trimestres si des clients ont excédé la limite de 390 ordres par mois pour un trimestre donné et doivent donc passer au statut de Professionnel le trimestre civil suivant. Veuillez noter qu'en vertu de ces règles, les ordres spread sont considérés comme un ordre unique; chaque jambe du spread ne représente donc pas un ordre. Les clients impactés par ces règles seront informés par IB. Par ailleurs, le Smart router IB prendra en considération ces nouveaux frais de Bourse lors du routage.

Pour plus d'informations, veuillez consulter les liens suivants:

ISE Regulatory Circular 2009-179

CBOE Regulatory Circular RG09-148

Ордера приоритетных или профессиональных клиентов

В 4-ом квартале 2009 года определенные американские биржи опционов (CBOE, ISE) ввели правила, различающие ордера публичных клиентов со статусом "Профессионал" (т.е. лиц с доступом к данным и/или технологиям, которые в некоторой мере позволяют им торговать как брокер-дилер) и розничные ордера.  Согласно этим правилам, если клиент не является брокером-дилером, а среднедневной объем опционных ордеров, размещенных на его счетах, в каком-либо месяце превышает 390 (независимо от того, исполняются ли они или нет), он будет классифицирован как "Профессионал". После первичной интеграции на CBOE и ISE похожие нормы опознавания "профессиональных" ордеров были введены и большинством других опционных бирж США.

Уровень важности исполнения ордеров, размещенных на данных биржах от имени профессиональных клиентов, будет соответствовать ордерам брокеров-дилеров. На них также будет налагаться плата за контракт, которая может колебаться от рибейтов в $0.65 до сборов в $1.12 (в зависимости от класса опционов). 

Брокеры обязаны производить ежеквартальную проверку для выявления клиентов, которые превысили порог в 390 ордеров за любой месяц рассматриваемого периода и которым в следующем квартале будет присвоен статус "Профессионал". Обращаем внимание, что в рамках данного правила спред-ордера рассматриваются как один ордер, т.е. леги не считаются отдельными сделками. Клиенты, подпадающие под действие этого предписания, будут уведомлены IB.  Вдобавок, Smart-маршрутизатор IB будет учитывать эти новые биржевые сборы, принимая решение, куда направить ордер.

Дополнительную информацию можно найти по следующим ссылкам:

Нормативный циркуляр ISE 2009-179

Нормативный циркуляр CBOE RG09-148

優先またはプロフェッショナルに分類されるお客様の注文

2009年第四四半期、特定の米国オプション取引所(CBOEおよびISE)において、「プロフェッショナル」(ブローカーディーラーと同じような方法で取引を行うことのできる情報および/またはテクノロジーにアクセスのある個人や機関)とみなされる一般顧客からの注文を区別する規則が実施されました。これに基づき、ブローカーディーラーではなく、特定の月に自身の口座のために毎日平均で390以上の上場オプション注文(約定したかどうかに関わらず)をすべてのオプション取引所に発注する口座は、プロフェッショナルとみなされるようになります。CBOEおよびISEによるオリジナルの実施以降、その他ほとんどの米国オプション取引所においても、「プロフェッショナル」注文の区別が実施されるようになりました。

プロフェッショナルのお客様の代理としてこれらオプション取引所に発注される注文は約定の優先を目的としてブローカーディーラーとして取り扱われ、リベート($0.65)から$1.12の手数料(オプションクラスにより)の範囲内で、コントラクトあたりの手数料の対象となります。 

ブローカーは暦四半期ごとにレビューを行い、この期間中の1ヶ月間に390注文の枠を超え、次の暦四半期にプロフェッショナルとして指定されるべき顧客を割り出すことが義務付けられます。この確認の際、スプレッド注文はスプレッドの各レッグを個別の注文として数えるのではなく、スプレッド注文ごとにひとつの注文として数えます。これによる影響のあるお客様には弊社よりご連絡を差し上げます。またスマートルーティング注文は、新しく発生する取引所手数料を考慮の上でルーティング先を決定するようにデザインされています。

詳細は以下のリンクをご覧ください:

ISE Regulatory Circular 2009-179

CBOE Regulatory Circular RG09-148

Allocation of Partial Fills

Title:

How are executions allocated when an order receives a partial fill because an insufficient quantity is available to complete the allocation of shares/contracts to sub-accounts?

 

Overview:

From time-to-time, one may experience an allocation order which is partially executed and is canceled prior to being completed (i.e. market closes, contract expires, halts due to news, prices move in an unfavorable direction, etc.). In such cases, IB determines which customers (who were originally included in the order group and/or profile) will receive the executed shares/contracts. The methodology used by IB to impartially determine who receives the shares/contacts in the event of a partial fill is described in this article.

 

Background:

Before placing an order CTAs and FAs are given the ability to predetermine the method by which an execution is to be allocated amongst client accounts. They can do so by first creating a group (i.e. ratio/percentage) or profile (i.e. specific amount) wherein a distinct number of shares/contracts are specified per client account (i.e. pre-trade allocation). These amounts can be prearranged based on certain account values including the clients’ Net Liquidation Total, Available Equity, etc., or indicated prior to the order execution using Ratios, Percentages, etc. Each group and/or profile is generally created with the assumption that the order will be executed in full. However, as we will see, this is not always the case. Therefore, we are providing examples that describe and demonstrate the process used to allocate partial executions with pre-defined groups and/or profiles and how the allocations are determined.

Here is the list of allocation methods with brief descriptions about how they work.

·         AvailableEquity
Use sub account’ available equality value as ratio. 

·         NetLiq
Use subaccount’ net liquidation value as ratio

·         EqualQuantity
Same ratio for each account

·         PctChange1:Portion of the allocation logic is in Trader Workstation (the initial calculation of the desired quantities per account).

·         Profile

The ratio is prescribed by the user

·         Inline Profile

The ratio is prescribed by the user.

·         Model1:
Roughly speaking, we use each account NLV in the model as the desired ratio. It is possible to dynamically add (invest) or remove (divest) accounts to/from a model, which can change allocation of the existing orders.

 

 

 

Basic Examples:

Details:

CTA/FA has 3-clients with a predefined profile titled “XYZ commodities” for orders of 50 contracts which (upon execution) are allocated as follows:

Account (A) = 25 contracts

Account (B) = 15 contracts

Account (C) = 10 contracts

 

Example #1:

CTA/FA creates a DAY order to buy 50 Sept 2016 XYZ future contracts and specifies “XYZ commodities” as the predefined allocation profile. Upon transmission at 10 am (ET) the order begins to execute2but in very small portions and over a very long period of time. At 2 pm (ET) the order is canceled prior to being executed in full. As a result, only a portion of the order is filled (i.e., 7 of the 50 contracts are filled or 14%). For each account the system initially allocates by rounding fractional amounts down to whole numbers:

 

Account (A) = 14% of 25 = 3.5 rounded down to 3

Account (B) = 14% of 15 = 2.1 rounded down to 2

Account (C) = 14% of 10 = 1.4 rounded down to 1

 

To Summarize:

A: initially receives 3 contracts, which is 3/25 of desired (fill ratio = 0.12)

B: initially receives 2 contracts, which is 2/15 of desired (fill ratio = 0.134)

C: initially receives 1 contract, which is 1/10 of desired (fill ratio = 0.10)

 

The system then allocates the next (and final) contract to an account with the smallest ratio (i.e. Account C which currently has a ratio of 0.10).

A: final allocation of 3 contracts, which is 3/25 of desired (fill ratio = 0.12)

B: final allocation of 2 contracts, which is 2/15 of desired (fill ratio = 0.134)

C: final allocation of 2 contract, which is 2/10 of desired (fill ratio = 0.20)

The execution(s) received have now been allocated in full.

 

Example #2:

CTA/FA creates a DAY order to buy 50 Sept 2016 XYZ future contracts and specifies “XYZ commodities” as the predefined allocation profile. Upon transmission at 11 am (ET) the order begins to be filled3 but in very small portions and over a very long period of time. At 1 pm (ET) the order is canceled prior being executed in full. As a result, only a portion of the order is executed (i.e., 5 of the 50 contracts are filled or 10%).For each account, the system initially allocates by rounding fractional amounts down to whole numbers:

 

Account (A) = 10% of 25 = 2.5 rounded down to 2

Account (B) = 10% of 15 = 1.5 rounded down to 1

Account (C) = 10% of 10 = 1 (no rounding necessary)

 

To Summarize:

A: initially receives 2 contracts, which is 2/25 of desired (fill ratio = 0.08)

B: initially receives 1 contract, which is 1/15 of desired (fill ratio = 0.067)

C: initially receives 1 contract, which is 1/10 of desired (fill ratio = 0.10)

The system then allocates the next (and final) contract to an account with the smallest ratio (i.e. to Account B which currently has a ratio of 0.067).

A: final allocation of 2 contracts, which is 2/25 of desired (fill ratio = 0.08)

B: final allocation of 2 contracts, which is 2/15 of desired (fill ratio = 0.134)

C: final allocation of 1 contract, which is 1/10 of desired (fill ratio = 0.10)

 

The execution(s) received have now been allocated in full.

Example #3:

CTA/FA creates a DAY order to buy 50 Sept 2016 XYZ future contracts and specifies “XYZ commodities” as the predefined allocation profile. Upon transmission at 11 am (ET) the order begins to be executed2  but in very small portions and over a very long period of time. At 12 pm (ET) the order is canceled prior to being executed in full. As a result, only a portion of the order is filled (i.e., 3 of the 50 contracts are filled or 6%). Normally the system initially allocates by rounding fractional amounts down to whole numbers, however for a fill size of less than 4 shares/contracts, IB first allocates based on the following random allocation methodology.

 

In this case, since the fill size is 3, we skip the rounding fractional amounts down.

 

For the first share/contract, all A, B and C have the same initial fill ratio and fill quantity, so we randomly pick an account and allocate this share/contract. The system randomly chose account A for allocation of the first share/contract.

 

To Summarize3:

A: initially receives 1 contract, which is 1/25 of desired (fill ratio = 0.04)

B: initially receives 0 contracts, which is 0/15 of desired (fill ratio = 0.00)

C: initially receives 0 contracts, which is 0/10 of desired (fill ratio = 0.00)

 

Next, the system will perform a random allocation amongst the remaining accounts (in this case accounts B & C, each with an equal probability) to determine who will receive the next share/contract.

 

The system randomly chose account B for allocation of the second share/contract.

A: 1 contract, which is 1/25 of desired (fill ratio = 0.04)

B: 1 contract, which is 1/15 of desired (fill ratio = 0.067)

C: 0 contracts, which is 0/10 of desired (fill ratio = 0.00)

 

The system then allocates the final [3] share/contract to an account(s) with the smallest ratio (i.e. Account C which currently has a ratio of 0.00).

A: final allocation of 1 contract, which is 1/25 of desired (fill ratio = 0.04)

B: final allocation of 1 contract, which is 1/15 of desired (fill ratio = 0.067)

C: final allocation of 1 contract, which is 1/10 of desired (fill ratio = 0.10)

 

The execution(s) received have now been allocated in full.

 

Available allocation Flags

Besides the allocation methods above, user can choose the following flags, which also influence the allocation:

·         Strict per-account allocation.
For the initially submitted order if one or more subaccounts are rejected by the credit checking, we reject the whole order.

·         “Close positions first”1.This is the default handling mode for all orders which close a position (whether or not they are also opening position on the other side or not). The calculation are slightly different and ensure that we do not start opening position for one account if another account still has a position to close, except in few more complex cases.


Other factor affects allocations:

1)      Mutual Fund: the allocation has two steps. The first execution report is received before market open. We allocate based onMonetaryValue for buy order and MonetaryValueShares for sell order. Later, when second execution report which has the NetAssetValue comes, we do the final allocation based on first allocation report.

2)      Allocate in Lot Size: if a user chooses (thru account config) to prefer whole-lot allocations for stocks, the calculations are more complex and will be described in the next version of this document.

3)      Combo allocation1: we allocate combo trades as a unit, resulting in slightly different calculations.

4)      Long/short split1: applied to orders for stocks, warrants or structured products. When allocating long sell orders, we only allocate to accounts which have long position: resulting in calculations being more complex.

5)      For non-guaranteed smart combo: we do allocation by each leg instead of combo.

6)      In case of trade bust or correction1: the allocations are adjusted using more complex logic.

7)      Account exclusion1: Some subaccounts could be excluded from allocation for the following reasons, no trading permission, employee restriction, broker restriction, RejectIfOpening, prop account restrictions, dynamic size violation, MoneyMarketRules restriction for mutual fund. We do not allocate to excluded accountsand we cancel the order after other accounts are filled. In case of partial restriction (e.g. account is permitted to close but not to open, or account has enough excess liquidity only for a portion of the desired position).

 

 

Footnotes:

1.        Details of these calculations will be included in the next revision of this document.

2.        To continue observing margin in each account on a real-time basis, IB allocates each trade immediately (behind the scenes) however from the CTA and/or FA (or client’s) point of view, the final distribution of the execution at an average price typically occurs when the trade is executed in full, is canceled or at the end of day (whichever happens first).

3.       If no account has a ratio greater than 1.0 or multiple accounts are tied in the final step (i.e. ratio = 0.00), the first step is skipped and allocation of the first share/contract is decided via step two (i.e. random allocation).

 

Additional Information Regarding the Use of Stop Orders

U.S. equity markets occasionally experience periods of extraordinary volatility and price dislocation. Sometimes these occurrences are prolonged and at other times they are of very short duration. Stop orders may play a role in contributing to downward price pressure and market volatility and may result in executions at prices very far from the trigger price. 

Investors may use stop sell orders to help protect a profit position in the event the price of a stock declines or to limit a loss. In addition, investors with a short position may use stop buy orders to help limit losses in the event of price increases. However, because stop orders, once triggered, become market orders, investors immediately face the same risks inherent with market orders – particularly during volatile market conditions when orders may be executed at prices materially above or below expected prices.
 
While stop orders may be a useful tool for investors to help monitor the price of their positions, stop orders are not without potential risks.  If you choose to trade using stop orders, please keep the following information in mind:
 
·         Stop prices are not guaranteed execution prices. A “stop order” becomes a “market order” when the “stop price” is reached and the resulting order is required to be executed fully and promptly at the current market price. Therefore, the price at which a stop order ultimately is executed may be very different from the investor’s “stop price.” Accordingly, while a customer may receive a prompt execution of a stop order that becomes a market order, during volatile market conditions, the execution price may be significantly different from the stop price, if the market is moving rapidly.
 
·         Stop orders may be triggered by a short-lived, dramatic price change. During periods of volatile market conditions, the price of a stock can move significantly in a short period of time and trigger an execution of a stop order (and the stock may later resume trading at its prior price level). Investors should understand that if their stop order is triggered under these circumstances, their order may be filled at an undesirable price, and the price may subsequently stabilize during the same trading day.
 
·         Sell stop orders may exacerbate price declines during times of extreme volatility. The activation of sell stop orders may add downward price pressure on a security. If triggered during a precipitous price decline, a sell stop order also is more likely to result in an execution well below the stop price.
 
·         Placing a “limit price” on a stop order may help manage some of these risks. A stop order with a “limit price” (a “stop limit” order) becomes a “limit order” when the stock reaches or exceeds the “stop price.” A “limit order” is an order to buy or sell a security for an amount no worse than a specific price (i.e., the “limit price”). By using a stop limit order instead of a regular stop order, a customer will receive additional certainty with respect to the price the customer receives for the stock. However, investors also should be aware that, because a sell order cannot be filled at a price that is lower (or a buy order for a price that is higher) than the limit price selected, there is the possibility that the order will not be filled at all. Customers should consider using limit orders in cases where they prioritize achieving a desired target price more than receiving an immediate execution irrespective of price.
 
·         The risks inherent in stop orders may be higher during illiquid market hours or around the open and close when markets may be more volatile. This may be of heightened importance for illiquid stocks, which may become even harder to sell at the then current price level and may experience added price dislocation during times of extraordinary market volatility. Customers should consider restricting the time of day during which a stop order may be triggered to prevent stop orders from activating during illiquid market hours or around the open and close when markets may be more volatile, and consider using other order types during these periods.
 
·         In light of the risks inherent in using stop orders, customers should carefully consider using other order types that may also be consistent with their trading needs.

U.S. Securities Options Exercise Limits

INTRODUCTION

Option exercise limits, along with position limits (See KB1252), have been in place since the inception of standardized trading of U.S. securities options. Their purpose is to prevent manipulative actions in underlying securities (e.g., corners or squeezes) as well as disruptions in option markets where illiquidity in a given option class exists.  These limits serve to prohibit an account, along with its related accounts, from cumulatively exercising within any five consecutive business day period, a number of options contracts in excess of the defined limit for a given equity options class (i.e., option contracts associated with a particular underlying security). This includes both early exercises and expiration exercises.

 

OVERVIEW

U.S. securities option exercise limits are established by FINRA and the U.S. options exchanges.  The exercise limits are generally the same as position limits and they can vary by option class as they take into consideration factors such as the number of shares outstanding and trading volume of the underlying security. Limits are also subject to adjustment and therefore can vary over time.  The Options Clearing Corporation (OCC), the central clearinghouse for U.S. exchange traded securities options, publishes a daily file with these limits on its public website. The link is as follows: http://www.optionsclearing.com/webapps/position-limits.  FINRA Rule 2360(b)(4) addresses exercise limits and can be found via the following website link: http://finra.complinet.com/en/display/display.html?rbid=2403&record_id=16126&element_id=6306&highlight=2360#r16126).

Note that exercise limits are applied based upon the the side of the market represented by the option position. Accordingly, all exercises of call options over the past five business days are aggregated for purposes of determining the limit for the purposes of purchasing the underlying security.  Similarly, a separate computation whereby all put exercises over the past five business days are aggregated is required for purposes of determining sales of the underlying.

 

IMPORTANT INFORMATION

It's important to note that while exercise limits may be set at levels identical to position limits, it is possible for an account holder to reach an exercise limit without violating positions limits for a given option class.  This is because exercise limits are cumulative and one could conceivably purchase options up to the position limit, exercise those options and purchase additional options which, if allowed to be exercised within the five business day window, would exceed the limit.

Account holders are responsible for monitoring their cumulative options exercises as well as the exercise limit quantities to ensure compliance.  In addition, IB reserves the right to prohibit the exercise of any options, regardless of their intrinsic value or remaining maturity, if the effect of that exercise would be to violate the exercise limit rule.

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