Investors utilising GTT (Good Till Triggered) orders should be aware that scheduled orders may be affected whenever a corporate action is announced for the underlying stock. Corporation actions that will trigger a cancellation of any existing GTT orders for the particular stock include bonus issues, dividends paid at more than 5% of the value of the stock, or stock splits.

Why Do Orders Get Cancelled?

This is a way to ensure that any orders reflect the new price or quantity once corporate actions take place. Orders will be automated and cancelled before the ex-date of the corporate action, ensuring that there is no chance of accidentally executing orders that reference old prices or quantities.

What Do Investors Need to Do?

If the GTT order was triggered at a particular price, it will not be active after the corporate action is in effect. The GTT order must be manually placed or re-entered after the corporate action has been completed.