This site is dedicated to displaying the unfair, egregious, and illegal treatment of market participants by any an all institutions. If you have evidence of the aforementioned, please email email@example.com
Currently some brokers are still mis-marking SBNY and/or refusing to honor the options holder's right to exercise.
Below is the list of brokers violating their client's rights.
Exhibit 1 - 14MAR23
"I have Sbny June 60 puts with fidelity. Fidelity told me they have to wait on OCC. OCC sent attached email. Nothing else except fidelity and OCC blaming eachother. "
Exhibit 2 - 14MAR23
"I have 5 contracts for 3-17-23 @70 which expire on Friday. I’ve reached out to Citi to ask about it but haven’t heard back from them yet. Sounds like I may need to send along some more details if these won’t settle."
Exhibit 3 - 14MAR23
"I have (long) 5 put contracts, with TD Ameritrade. My conversations with them since Sunday night, ranged from clueless reps, to unusual apathy, stock statements, borderline coaxing to just let the options expire. In the least, why should another market participant run away with my premium, when I do not have access to it, and will lose it on Mar 17, if I don't exercise the puts. But, really, it's the max gain from strike price to almost $0 (value of a shut down company/stock, that I am aiming to be awarded with. "
Exhibit 6 - 14MAR23
Exhibit 7 - 14MAR23
"I am in Canada. I have 3/17 puts ($105 and $110 strikes) first one - in Questrade. See e-mail below. This is on a margin account and I can't close/sell the option and can only put a request to exercise, and will have to maintain a margin with fees which is absurd.
Exhibit 8 - 14MAR23
"I have several calls into Robinhood about my 3 $65 strike price 3/17 expiry puts purchase on Friday March 10, 2023. They have told me several times I would need to own the shares in order to exercise the put options. Odd thing is they have told me this knowing that they don’t offer the option to short a stock and I can’t BUY shares because the stock is halted. I have a TD Ameritrade account but to transfer the $SBNY put options would take 7-10 business days and my expiry for the options is 3/17/23 and today is 3/14/23. I have provided photographs of my communications with them and also of my order to sell the puts themselves. The options desk phone operators are contractors themselves and it seems they are protecting the broker seller of these options. I’m the buyer of them. The SP is zero, and they owe me per the contract I made with them to buy these puts $19,500.00 (3 contracts $65 strike price 3/17 expiry) "
Exhibit 9-1 - 14MAR23
"I have 23 $50 PUTS for April 21 Exp.
Exhibit 16 - 15MAR23
"Today, I called ETrade to attempt to exercise put options on Signature Bank of New York ($SBNY) which I am holding in my account #xxxx-xxxx. I have 5 $SBNY 65 puts and 1 $SBNY 50 put expiring on Friday, March 17.
Over the weekend, a joint statement was issued by the US Treasury, Federal Reserve, and FDIC (https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm) in which it was announced that Signature Bank had been closed by its state regulator and seized under Section 606 of the New York Banking Law (https://twitter.com/Frances_Coppola/status/1635590780378030080). The statement reads in part: "Shareholders and certain unsecured debtholders will not be protected."
I find these actions on ETrade's part completely unprofessional and unacceptable. There is zero risk in allowing your account holders to open new short positions in SBNY at a $65 or $50 entry price at a 100% margin collateral rate. I would think it would be in ETrade's interest both to help their account holders who have expiring SBNY puts to realize their profits (which will ultimately convert into balances at ETrade), as well as to avoid the reputational hit of having these bizarre risk limit decisions scrutinized in arbitration or the news media. "