OptionsHouse Terms and Conditions for Processing Voluntary Corporate Actions and Rights Offerings
Voluntary Corporate Action (VCA) and Rights Offerings’ instructions are submitted by the customer by calling the trade desk.
Processing of voluntary corporate action (VCA) instructions by OptionsHouse are processed on a best-efforts basis and are based upon the current information available to OptionsHouse. Prior to submitting VCA instructions to OptionsHouse, it is the customer’s responsibility to fully understand the conditions of the offering as detailed on the issuer’s website or other reliable third party resources.
Your OptionsHouse account is a self-directed account and any information provided to you by OptionsHouse in connection with your VCA instructions does not constitute advice or a recommendation by OptionsHouse.
The deadlines for submitting VCA instructions to OptionsHouse will most likely be earlier than the issuer’s stated deadline. The purpose of the earlier deadline is to allow OptionsHouse and its clearing firm sufficient time to process all client instructions prior to the issuer’s deadline. OptionsHouse cannot guarantee that VCA instructions submitted or withdrawn on or near the issuer’s cutoff will be processed prior to the VCA’s expiration.
OptionsHouse customers will receive a verbal confirmation at the time the tender is processed. In the event the customer is unsure that their VCA instructions have been received and submitted, it is the customer’s responsibility to follow up with OptionsHouse Trade Desk Department to ensure their instructions have been received and submitted to our clearing firm. OptionsHouse is not liable for unacknowledged instructions which may have not been received or processed.
Upon submitting VCA instructions for your shares, OptionsHouse will remove the position or replace it with a non-tradable symbol. If you wish to trade a position for which VCA instructions have already been submitted, new instructions will first need to be submitted by calling OptionsHouse Trade Desk Department to withdraw the tender instructions. Once your position has been restored, trade instructions may then be submitted. Tenders can only be withdrawn if OptionsHouse receives your instructions to withdraw prior to the issuer’s stated cutoff date for withdrawals. Any trading by the customer in the underlying security after their shares have been tendered which results in the customer’s account being negatively impacted, including but not limited to, a debit balance in the account, shall be the full responsibility of the customer and not OptionsHouse.
Any untendered/unelected or additional shares purchased after the submission of the original VCA instructions of the underlying security but prior to the issuer’s deadline, including option assignments and exercises, will not be automatically submitted based on any previously submitted VCA instructions. Any additional shares purchased or previously untendered shares remaining in the account will only be tendered by calling in additional VCA instructions to the OptionsHouse Trade Desk Department prior to OptionsHouse’ s stated deadline. Any additional VCA instructions submitted will be acknowledged in the same manner as described in paragraph #5.
Shares sold for which VCA instructions have been previously submitted and processed will not result in a reduction of the amount of shares tendered. See paragraph #6 regarding the process for withdrawing previously tendered shares.
Specifically concerning rights offerings, OptionsHouse will only process instructions to oversubscribe to a rights offering once the customer has subscribed to the maximum allotment under the issuer’s original subscription privilege. If this condition has not been met, OptionsHouse, or our clearing firm, Apex Clearing Corporation, reserves the right to reject a customer’s request to oversubscribe to the offering.
Additionally, in regards to rights offerings, it is the customer’s responsibility to ensure his/her account has sufficient funds available to purchase the extra shares at the time of oversubscription. OptionsHouse reserves the right to verify the account has sufficient funds available prior to submitting subscription instructions to our clearing firm. In the event the account will fall into a margin requirement due to an oversubscription, OptionsHouse reserves the right to reduce or cancel the oversubscription instructions from the client.