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  • QA 139
    Question:
    Can one change/withdraw orders once placed in NYBOT's new electronic 'pre-order' facility?
    Background:
    The pre-order facility on the new electronic system for New York coffee futures looks to be quite useful for certain time zones. But what if one wanted to change or withdraw an order after placing it? Is that possible?
    Asked by:
    Exporter - India
    Answer:

    Just as in the open-outcry system, any order that has not yet traded can be changed or cancelled.

    However, it is good to note the following:

    The NYBOT/ICE Electronic Trading System or ETS allocates each order a time priority. Rule 27.13 of the Electronic Trading Rules states as follows:

    "The price or volume of an ETS order that has not fully traded may be revised. If the volume is reduced, the time priority originally assigned to the order does not change. Revising the price or increasing the volume will change the order's time priority in the queue to the time ETS receives the revision."

    Pre-open orders are executed on a first-in first-out basis when the market opens. This is because orders entered during the pre-open session will not be available for execution until the electronic session opens. However, if one increases the quantity or changes the order price then the time stamp will change and the order goes to the back of the queue. On the other hand, if you simply decrease the quantity with everything else remaining the same, then the order retains its original place in the queue.

    The full NYBOT Rule Book can be downloaded from www.nybot.com. Click on Rulebooks and the entire list appears, including coffee, with the Electronic Trading Rules in Chapter 27. We recommend prospective users of the ETS to familiarize themselves with these rules that contain much explanatory information.

    NB: In January 2007 The New York Board of Trade (NYBOT) merged with  InterContinental Exchange (ICE) - see ICE Futures US at www.theice.com

    Posted 07 March 2007

    Related chapter(s):
    Related Q & A:
    Q&A 133, 135