How should a market center report an order execution whose terms are subsequently adjusted or an order execution that is voided entirely?
If the terms of an order execution are adjusted or the execution is voided within a normal settlement cycle, the market center should report on the order in accordance with the terms of execution as they were finally received by the customer. Orders not adjusted or voided until after the normal settlement cycle should be reported as they were originally executed. Example 16-1: A market center originally executes a market order to buy 200 shares of Security A at $15.80. The next day and prior to settlement, the market center receives an “exceptions report” indicating that the order should have been executed at a more favorable price to the customer. The market center adjusts the price to $15.70 and gives this price to the customer. The market center should report on the order based on a $15.70 execution price. All other reporting would remain the same (e.g., time of order execution).
Related Questions
- Should a market centers monthly report encompass all trading days that fall within a calendar month, as opposed to settlement days that fall within the calendar month?
- How should a market center report under the Rule when the Consolidated BBO used to calculate the Rules statistics appears to be erroneous?
- How should a market center report under the Rule on an order that it receives and executes as riskless principal?
