Sign In
View Entire Document

Order Handling Scenarios

Table 1. Circuit breaker is NOT in effect:
Order: Liquidity at Cboe? Possible Results:
  1. Short Sale Exempt: Routable
 No Cboe liquidity at Price.
  1. Route to proper venue if liquidity exists (refer to SEC FAQ 5.3/5.4).
  2. If not executed away, cancel if IOC.
  3. If not IOC and not executed away and Price > NBB, order will book at Cboe.
  1. Short Sale Exempt: Non-Routable
 No Cboe liquidity at Price.
  1. Cancel if IOC.
  2. If not IOC and Price > NBB, order will book at Cboe.
  3. If not IOC, Price ≤ NBB, and price-sliding is enabled, order will book at Cboe subject to NMS price sliding; otherwise cancel.
  1. Short Sale Exempt: Routable or Non-Routable
 Yes, Cboe liquidity exists at Price.
  1. Execute at Cboe (Members responsible for improper marking violations).
  2. If order not completely filled, refer to scenario 1 or 2 above.
  1. Short Sale: Routable or Non-Routable
 Same result for yes and no.
  1. If local liquidity exists, execute at Cboe (Members responsible for improper marking violations).
  2. If order not completely filled, refer to scenario 1 or 2 above.
Table 2. Circuit breaker IS in effect:
Order: Liquidity at Cboe? Possible Results:
  1. Short Sale Exempt: Routable
 No Cboe liquidity at Price.
  1. Route to proper venue if liquidity exists (refer to SEC FAQ 5.3/5.4).
  2. If not executed away, cancel if IOC.
  3. If not IOC and not executed away and Price > NBB, order will book at Cboe.
  1. Short Sale Exempt: Non-Routable
 No Cboe liquidity at Price.
  1. Cancel if IOC.
  2. If not IOC and Price > NBB, order will book at Cboe.
  3. If not IOC, Price ≤ NBB, and price-sliding is enabled, order will book at Cboe subject to NMS price sliding; otherwise cancel.
  1. Short Sale Exempt: Routable or Non-Routable
 Yes, Cboe liquidity exists at Price.
  1. Execute at Cboe (Members responsible for improper marking violations).
  2. If order not completely filled, refer to scenario 5 or 6 above.
  1. Short Sale: Routable or Non-Routable
 No Cboe liquidity at Price.

Cboe will not route orders marked Short (not exempt) when Circuit Breaker is in effect except when necessary to perform Post to Away routing.

  1. Cancel if IOC.
  2. If not IOC and Price > NBB, will book at Cboe.
  3. If not IOC, Price ≤ NBB, and price-sliding is enabled, order will book at Cboe subject to short sale price sliding; otherwise cancel.
  1. Short Sale: Routable or Non-Routable
 Yes, Cboe liquidity exists at Price.

Cboe will not route orders marked Short (not exempt) when Circuit Breaker is in effect except when necessary to perform Post to Away routing.

  1. If Price > NBB, will execute against hidden at Cboe.
  2. If Price ≤ NBB, cancel if IOC.
  3. If not IOC and Price ≤ NBB, and price-sliding is enabled, order will book at Cboe subject to short sale price sliding; otherwise cancel.
  1. Non-displayed
 Same result for yes and no.
  • Cboe will not route orders marked Short (not exempt) when Circuit Breaker is in effect except when necessary to perform Post to Away routing.
  • Same as displayed except that a resting non-displayed short (not exempt) order will cancel or slide upon locking or crossing the NBB.
Next
Cboe Exchange Regulation SHO Amendment Order Handling Scenarios and FAQ - Order Handling Scenarios | Cboe