A process carried out by the Options Clearing Corporation (OCC) designed to speed up clearing member's exercise of expiry option. It will automatically exercise options that are "in the money" by a stated maximum amount unless otherwise instructed by its members for these options not to be exercised. The OCC's aim is to ease its member of the added burden of having to enter separate exercise instruction for each option contract that needs to be exercised.
Related information about exercise by exception:
- Options Exercise
EXERCISE BY EXCEPTION. "Exercise by exception" is an administrative procedure used by OCC to expedite the exercise of expiring options by Clearing ...
- What is exercise by exception? definition and meaning
Definition of exercise by exception: A process carried out by the Options Clearing Corporation (OCC) designed to speed up clearing member's exercise of expiry ...
- Exercise (options) - Wikipedia, the free encyclopedia
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- Option assignment and expiration notification procedures
The Options Clearing Corporation has introduced the exercise by exception procedure to protect the interests of investors; however, exercise by exception may ...
- REG 2008-22: Exercise-by-Exception Threshold Change in Equity ...
Jun 20, 2008 ... Exercise-by-Exception Threshold Change in Equity Options. The purpose of this Notice is to advise members and member organizations that ...
- Exercising Options Involves Many Choices
Oct 8, 2006 ... Many brokers will "Exercise by Exception" meaning they will automatically exercise an option once a predetermined threshold is met - no matter ...
- FAQs - U.S. Securities Option Expiration | IB Knowledge Base
In accordance with this process, referred to as exercise by exception, account holders are not required to provide IB with instructions to exercise any long options ...
- Print - FINRA - Rules and Regulations
... Options Clearing Corporation's (OCC) Exercise-by-Exception (Ex-by-Ex)2 procedure, be made and recorded by clearing firms prior to 5:30 p.m. Eastern Time, ...