Tuesday, July 25, 2006

Latest update on the North Korean Missile Test expiry

While we have successfully used the Department of Defense as an expiry source previously, no confirmation has been forthcoming on this occasion. Consequently, the Contract has remained unexpired.

Should no confirmation be received in accordance with the Contract rules, the Contract will expire at 0 after 31st July 2006. Please refer to the Contract for comprehensive rules.

This strict and correct adherence to the stated Contract rules ensures the integrity of the Exchanges markets, and our members ability to rely on what is written in our rules.

In this situation, however, the specifics of the North Korean Missile Test Contract have created an undesirable scenario in which the Exchange cannot confirm an event which some of our members believe has occurred. This is a very unfortunate position and one that the Exchange genuinely regrets.

Accordingly, the Exchange is taking a number of steps including the following?

1. The Establishment of an Arbitration Settlement Committee in the near future. Additional details to follow

2. Extending the sources for confirmation on similar contracts in future

3. Including a new extra confirmation step on the order ticket for similar contracts in the near future

We apologise for any inconvenience caused. In particular we apologise to those members who interpreted a 'contract intention' without having assimilated the Contract rules before they traded.

The entire statement can be found here. More from this blog and commenters here.

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