What is ‘Cancel Former Order – CFO’
An order from an investor to a broker, to cancel a previously placed order that has not yet been filled. Cancel former order (CFO) is used by an investor who has changed his or her mind about a securities transaction that has not yet been executed or filled, and wishes to change one or more of the order parameters, such as price or amount. By canceling the previous order, a CFO ensures that no order duplication takes place if the client generates a new order for the same security.
Explaining ‘Cancel Former Order – CFO’
It goes without saying that a CFO can only be used to replace unfilled orders; orders where a fill has been received are binding contracts and cannot be revoked.
Further Reading
- The impact of pennies on the market quality of the Toronto Stock Exchange – onlinelibrary.wiley.com [PDF]
- Who's really in charge? Audit committee versus CFO power and audit fees – meridian.allenpress.com [PDF]
- Price Discovery of the Close-and-open Call Auction Mechanism [J] – en.cnki.com.cn [PDF]
- Opening the black box of upper echelons: Drivers of poor information processing during the financial crisis – onlinelibrary.wiley.com [PDF]
- Profiting from government stakes in a command economy: Evidence from Chinese asset sales – www.sciencedirect.com [PDF]
