Opening or Closing
Cross Orders
Near the open of trading or during periods of unusual market volatility, prices and available volume may change very rapidly and data feeds may fall behind and become inaccurate. GTN cannot guarantee that orders sent near the open or close or in periods of extreme volatility will be executed at the best posted price.
Market on Close (“MOC”) and Limit on Close (“LOC”) orders can only be canceled past the stated deadline of each exchange (or market center) according to the rules, and closing procedures, of that particular exchange or market center. For example, NYSE Rule 123C(3) states that MOC, LOC and CO orders can only be canceled up to 3:45 p.m. for any reason. Between 3:45 p.m. and 3:58 p.m., MOC, LOC and CO orders can only be canceled or reduced in size to correct a legitimate error. A legitimate error means an error in any term of an MOC or LOC order, such as: price, number of shares, side of the transaction (buy or sell), or identification of the security. After 3:58 p.m., MOC, LOC and CO orders may not be canceled or adjusted for any reason, including the correction of a legitimate error.
Therefore, all clients are required to notify GTN prior to effecting any cancellation of an MOC/LOC/CO after the 3:45 cut off time. GTN is the only party that:
- a) Will determine if the cancelation request is in accordance with the specific venue or market place’s regulations;
- b) Can affect the cancellation of the orders, and
- c) Is required to maintain the documentation for such determination.
Cancellations of any MOC/LOC order(s) after the stated deadline of each exchange (or market center) (e.g., 3:45 p.m. E.S.T. for NYSE. 3:50 p.m. E.S.T. for NASDAQ) must be first approved by GTN and any such approval requests must to be directed to GTN’s Operations department. The COO, or his designee, shall make the determination as to the legitimacy of the request pursuant to the standard above and shall document the request, determination, and approval or denial of such a request.
Clients are prohibited from effecting a cancellation after the prescribed stated deadline of each exchange (or market center) without being required to reach out to GTN (e.g. for NYSE, clients should not have the ability to cancel MOC/LOC orders after 3:45 p.m. E.S.T.). Clients are also prohibited from effecting strategies that would be considered manipulative order entries, e.g. orders by a client to “ramp” into the closing cross in order to benefit an opposing closing cross order for that same client.
Any violation of this policy may be considered a potential breach of the client’s agreement with GTN and could result in the termination of its relationship with the client or result in the imposition of punitive measures. If, upon review by GTN’s Compliance Department, GTN finds patterns or practices that, in its determination, raise questions regarding any Client’s trading behavior, GTN reserves the right to take action that may include contacting the Client for further information and, where appropriate, terminating the client’s access and or Clearing agreement. Please direct any questions you may have to GTN’s Compliance Department at compliance@gtnamericas.com.
Contact Us
If you have any questions about this policy, please write, call, or email us.
4509 Creedmoor Road, Suite 201
Raleigh, NC 27612 United States
Call us: +1 332 230 1184
Email: compliance@gtnamericas.com