What time each day does the Clearing Firm receive information regarding assignments etc. from OCC?
OCC’s clearing members can submit exercise notices, on a daily basis, up to 7:00 p.m. Central time, and in general each clearing member will establish its own (earlier) deadline for its customers. (There is a different set of procedures for expiring options.) As part of its nightly processing, OCC randomly assigns its clearing members based on the day’s exercises. This processing is completed at approximately 1:00 a.m. Central time. OCC transmits the assignments to its clearing members and as part of the member’s nightly processing, they allocate the assignments to their customers on either a random basis or a first in – first out basis. We understand the exchanges’ rules are that customers should be notified of assignments in a timely manner. It is best that you and your broker determine what constitutes “timely manner” beforehand: does “timely manner” mean a call the morning of the assignment? Is there an update to your account that you can view online? Will you receive a letter in t
