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:
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If the NVDR trades are not due for clearing & settlement , a broker is able to adjust the transaction covering the NVDR’s purchase or sale in the clearing house system by referring to transaction’s deal number as per below
- NVDR’s purchase order can be adjusted from trade date until settlement date and the adjusted transaction must be recorded in the system no later than 11.30 a.m. on the settlement date.
- NVDR’s sale order can be adjusted from trade date until settlement date and the adjusted transaction must be recorded in the system no later than 1.15 p.m. on the settlement date.
The effective date will be on April 20, 2020 (Settlement date) onward.
- If clearing and settlement has been completed, a brokers must adjust the transaction in the clearing house system by referring to transaction’s 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.
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