TD AMERITRADE's Plan for the New OCC Symbology
The Options Clearing Corporation (OCC) has adopted a plan to overhaul options symbols.
Under the current format, many financial organizations were restricted in their ability to identify and process exchange-listed option contracts. The new symbology will allow more options listings and display the vast majority of contracts using the same symbol as the underlying security. The enhanced symbology will provide more information about option contracts and should help to reduce investor confusion. You can visit the OCC Web site to learn more about the Symbology Initiative.
What is changing
The existing three-to five-character option symbol will be replaced by a new symbol that will more clearly identify the underlying security in most cases, as well as the attributes of the options contract.
- To provide this level of detail, the new symbol will be longer and more descriptive. It will show the ticker symbol of the option; the option's expiration date; the strike price; and the type (put or call).
- As a hypothetical example, a WXYZ Company (trading symbol: WXYZ) $75 strike call option that expires November 21, 2009 might currently be represented by the ticker symbol +WKOKO. The new symbol would look like WXYZ Nov 21 2009 75.0 Call. The example symbol is displayed below.
WXYZ |
Nov 21 2009 |
75.0 |
Call |
| Root Symbol |
Expiration |
Strike |
Type |
Over the next few months, TD AMERITRADE Corporate Services will implement the new, more detailed description for identifying option quotes and single account positions on the new Veo site.
The new option descriptions will be implemented gradually in other locations on the Web site. In the meantime, you can still get quotes and place orders by entering the 3-5 character OPRA code.
In February, you and your employees will see option contracts displayed in the new, longer format on the new Veo site, AdvisorServices.com and TDAMERITRADE.com screens, including those showing statements, orders and positions. The existing three- to five-character symbol will no longer be used.
For Corporate Services clients utilizing vendors, we are working with your vendors to ensure that they are able to correctly display the new options format and to ensure a seamless transition for file downloads.
We will keep you informed
TD AMERITRADE Corporate Services is committed to keeping you and your employees informed. Over the next several months, we will continuously update you throughout this process, through emails and on Veo, to let you know options listings may be affected. We will also inform your employees when changes are made and notify you when we do.
If you have any questions or concerns regarding the new options symbols, please call TD AMERITRADE Corporate Services:
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD AMERITRADE review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Market volatility, volume, and system availability may delay account access and trade executions.
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