During post-trading, which action regarding non-executed orders with current trading-day validity is true?

During post-trading, which action regarding non-executed orders with current trading-day validity is true?

• A. No transactions take place
• B. New orders can be entered or existing orders can be withdrawn
• C. Exchange recalculates tomorrow TOP
• D. All trades are settled immediately

Answer: (A)

Trading-day validity means an order can be executed only while the market is open. Once the session moves into post-trading, the matching engine is no longer active, so there are no new transactions generated from non-executed orders that were valid only for the trading day. Those orders simply remain unfilled and then expire at the end of the day, while the post-trading phase focuses on clearing and settling trades that already occurred. So no new transactions take place for those day-valid orders in post-trading. The other options imply actions that belong to the trading session or misstate how settlement works, which is why they’re not correct.

Trading-day validity means an order can be executed only while the market is open. Once the session moves into post-trading, the matching engine is no longer active, so there are no new transactions generated from non-executed orders that were valid only for the trading day. Those orders simply remain unfilled and then expire at the end of the day, while the post-trading phase focuses on clearing and settling trades that already occurred. So no new transactions take place for those day-valid orders in post-trading. The other options imply actions that belong to the trading session or misstate how settlement works, which is why they’re not correct.