An NVDR trading order has to be designated as such, because otherwise it may be mistaken as an order for the underlying security. However, occasionally an NVDR order may be mistakenly labeled. Fortunately, in these circumstances a broker is allowed to correct mistakes in an order, as described below:
Brokers can correct an error within the same trading day (before the market closes) by designating an order as an NVDR trade, even though it may have been matched. Please note that this correction must be completed no later than 5:00 p.m. of that trading day (T).
To correct an error after the trading day, brokers can correct an error based on the following conditions:
1. If clearing and settlement has not been completed, a broker must adjust the transaction covering the NVDRís purchase or sale in the clearing house system by referring to transactionís deal number. Please note that the adjusted transaction must be recorded in the system no later than 11:30 a.m. on the Settlement Date.
- 2. If clearing and settlement has been completed, a brokers must adjust the transaction in the clearing house system by referring to transactionís deal number. Deals that may be adjusted must have taken place over the last three months from the date of seeking correction, provided that the books have not been closed since the deal in question took place. If there has been a book closing in the last three months, only deals since the closing may be adjusted.
Fees for adjusting NVDR trades will be waived effective August 1, 2011.