Trade Cancellation/Bust Fees

Exchanges and market centers often impose a fee for trade cancellation requests in addition to fees charged by BMC. Customers are also encouraged to familiarize themselves with all fees associated with cancellation requests prior to initiating a request.

Notification Procedures

Customers who receive an execution which they believe to be clearly erroneous1 and who wish to have BMC petition the exchange or market center to have the trade cancelled on their behalf are strongly encouraged to submit their request using the Trade Cancellation Request tool located within Account Management. While requests received via telephone will also be processed, such requests may involve connection wait times and entail information collection on the part of BMC which, in the aggregate, may lessen the likelihood that the petition is submitted in time. Please note that BMC does not support free format email communications and requests sent through the Help & Contacts link on the website are not intended for matters of urgency.

Cancellation Requests Where BMC Customers are on Both Sides of the Trade

As exchanges and market centers generally opt not to rule on cancellation requests involving customers of the same brokerage firm, BMC will, when appropriate, apply the transacting venue's policy to such requests. Given the highly subjective and varied nature of these policies, BMC has adopted the policy below in order to provide a level of certainty and predictability for our customers.

BMC will make a determination only when the transacting exchange or market center refuses to rule on a trade and will abide by the trade cancellation policies of such organization whenever possible. Please consult the website of the respective exchange or market center for specific trade cancellation policies. Decisions involving trades not specifically defined in the respective organization's trade cancellation policy will be made on a case by case basis and if a clear policy for a specific execution in question does not exist, BMC will evaluate a range of data including, but not necessarily limited to, the considerations outlined below. We will review all information considered to be relevant in determining the nature of a fair and orderly market and on those grounds, we will make a decision on a specific execution on a best efforts basis:

• Timeliness of Notification: Requests for trade cancellations must be made within the time limits set by the relevant venue preferably via the Trade Cancellation Request tool.
• Company or industry specific news/events.
• Recent volatility of stock.
• Change in broad market indicators at time of execution.
• We will consider the length of time the order was live before execution. BMC may be more inclined to break a trade if the order hits/lifts an existing bid/ask and less inclined to break if the order becomes the best bid/ask before execution.
• Time of order submission and subsequent execution. (Pre/Post market vs. during the Trading Day).
• Opening indication.
• Adjacent transaction reports or indications. For example, Previous Day's Close Previous reported trade price, subsequent reported trade price Last Prints.
• Next consecutive prints.
• Liquidity issues.

The guidelines outlined above are designed to provide a level of protection for our customers. However, no policy can anticipate every conceivable situation. BMC reserves the right to make determinations in the interest of maintaining a fair and orderly market.