Information Notice 11/20/23

The Financial Industry Regulatory Authority (FINRA) has published an information notice to remind member firms that – due to the early closing of the US option exchanges on Friday, November 24, 2023, the day following Thanksgiving – holders of options expiring that day must make their final decision as to whether or not they intend to exercise their options by 2:30 p.m. Eastern Time that day. The usual cutoff time for such decision is 5:30 p.m. Eastern Time.
Also, FINRA reminds its members about specific procedures with respect to the exercise of expiring standardized equity options. In general, if these options are in-the-money, they will be automatically exercised. For call option positions, any associated exercise costs will be due at that time. Option holders have two choices regarding expiring standardized equity options:
1. Take no action and let exercise determinations apply automatically.
2. Submit a „Contrary Exercise Advice“ which allows the option holder to either not exercise an option that would otherwise be automatically exercised or to exercise an option that wouldn’t be exercised automatically.
Additionally, an option holder can cancel a previously submitted „Contrary Exercise Advice“ by filing an „Advice Cancel.“