Question - if we assume that multiple people with RSX puts are emailing their brokers - is there any chance the broker customer service would share our class action petition?
Would it be against their standard operating procedures to direct clients to a 3rd party thing like that? If not, we should email our brokers the link. I’m going to send it to robinhood.
I can’t imagine a broker passing a link to a petition for a class action lawsuit. There’s no way they would do that.
Hey quick question, did anyone have any “ITM” puts for 3/11? What happened to those?
I did not but they would also have expired worthless if you were not able to manually exercise them through your broker.
Define “ITM”, are you using last trade price?
Yes, I put up quotation mark for the fake price it’s halted at. Like 7s are indisputably ITM, but they’re pulling shenanigans to say 5s aren’t. Might have missed it but I haven’t seen anyone have strikes at 6 or higher last week.
Yes, I can confirm. I had a 10p that expired worthless while ITM and some 5ps
Ok, I had 5’s so I guess that’s a no.
Why does it matter? Auto-exercise was disabled by the OCC so everyone had to manually exercise would wanted to (and was able to), regardless of the strike.
Damn. Thank you for the response
Maybe not super important but here’s another Bloomberg mention of RSX today
https://www.bloomberg.com/news/articles/2022-03-17/when-etfs-stop-working
Recent OCC memo regarding $OZON:
I’ll have to reread this again when I wake up, but it looks to me like if you can’t deliver shares there’s a possibility of cash settlement.
Don’t quite grasp the delay portion yet.
https://infomemo.theocc.com/infomemos?number=50188 also a recent memo on $RSX -
Date: March 16, 2022
Subject: VanEck Russia ETF - Broker-To-Broker Settlement/Exercise Considerations
Option Symbol: RSX
Effective March 16, 2022, the National Securities Clearing Corporation (“NSCC”) will no longer accept RSX exercise and assignment activity for settlement. As a result, all exercise and assignment activity for RSX options beginning March 16, 2022 will be subject to broker to broker settlement. It is unknown if and when RSX shares will be eligible for settlement through NSCC again.
The deliverable for RSX options contracts will remain the underlying 100 RSX Shares.
No Exercise Restrictions
OCC has determined not to impose any exercise restrictions with respect to RSX options. Therefore, OCC will continue to accept and process exercise instructions in accordance with its Rules and as further described below. Because OCC has been informed NSCC will not accept exercise/assignment transactions involving RSX for settlement, such settlement will be effected as follows.
Broker-to-Broker Settlement
Pursuant to OCC By-Law Article VI, Section 19, OCC has determined that, effective with exercises of March 16, 2022 and thereafter, all RSX exercise and assignment activity shall settle on a broker-to-broker basis. The deliverable for RSX options contracts will remain 100 RSX Shares. If it is not possible for the delivering Clearing Member to effect delivery of the RSX shares on the designated settlement date, then the settlement obligations of both delivering and receiving Members shall be delayed until such time as OCC designates a new exercise settlement date, settlement method and/or settlement value. This determination allows delivering Members the opportunity to effect settlement if they have RSX shares and are able to effect delivery, but delays the settlement obligation when this is not possible. Both the delivering and receiving Clearing Members are required to immediately notify OCC if they are unable to effect settlement.
In determining that delivery of the RSX shares is in fact not possible in respect of a given exercise or assignment, OCC shall require an appropriate officer(s) of the delivering Clearing Member to represent in writing that delivery is not possible. (Upon exercise or assignment of RSX options, OCC will contact each delivering Clearing Member to provide the specific requirements and procedures for such representation.)
Pursuant to customary OCC broker to broker settlement procedures, inability to effect delivery may subsequently occasion cash settlement as determined by OCC.
#50188
Broker-to-Broker Delivery Advice/Settlement Procedures
Clearing Members should note that RSX exercise and assignment activity will be reported on the Broker- to-Broker Delivery Advice, which is a separate report from the regular Delivery Advice. Members will need to refer to this report each day to be informed of RSX exercise/assignment activity. The Broker-to-Broker Delivery Advice will also identify the opposite side Clearing Member with whom settlement is to be made. Members are responsible for contacting the opposite side on all RSX activity and for making arrangements for settlement. Both delivering and receiving Members are also reminded of their obligation to inform OCC when settlement is made. OCC will continue to margin RSX exercise/assignment activity until settlement is accomplished.
Yeah the “may” result in cash settlement is key here I think. There’s also language indicating that it’s going to be handled on a broker to broker basis so people may need to be prepared to harass their broker for their interpretation of what can be done.
I’m not any sort of someone experienced in this business so take my words with an grain of salt, but my interpretation is if the shares can’t be gathered for exercising, the settlement date is just pushed back indefinitely. Meaning our contracts shouldn’t expire tomorrow. And then at a later date OCC will determine if cash settlement is required depending on if trading resumes or not.
It seems like both memos (50188 and 50190) are identical except for the subject OZON/RSX
It still seems like you have to request exercising to find out if the broker-to-broker settlement is possible and then only if its not is the possibility of delayed settlement or cash settlement by OCC come into play.
Meaning if you don’t (try to) exercise then the delay/cash settlement option won’t even come into the picture.
Am I reading that wrong?
So same thing would applied for march 11th?
Took one for the team and just exercised a single 3/18 $8 put on IBKR and it went through like normal so for at least IBKR this doesn’t seem to mean anything - if you exercise you get 100 shares short RSX.
do u know the margin and borrowing fee?
I opened a ticket with IBKR to ask about fees and margin requirements, and also if they can provide me with any info regarding the effect of the new info memos. I’ll post the results