In the bid-wanted sector of the market, bids placed on bid-wanted items are good until withdrawn, with all bids being withdrawn at the end of the trading day. An exception to the "good until withdrawn or the end of the day" bidding process is when a potential seller instructs the RW Smith broker's broker to put the bid-wanted item(s) out with a Sharp/Firm time designation. In these instances the potential seller is asking the Street (bidders), for example, for bids by 10 a.m. Sharp/Firm until 11 a.m. Accordingly, the bidding process will close at 10 a.m. sharp, meaning RW Smith will not accept bids after 10 a.m. and will typically turn the high bid in within 10 minutes. The bidders of the Sharp/Firm item have agreed, by bidding, to stand by their bid until the Firm time; if a bid-wanted is marked for sale after the Firm time passes, the bidder does not have to stand by their bid. Further, all bidders are entitled to posts on their bids immediately following the Sharp time; they are entitled to know where they stand in the bid pad, but are not entitled to know the level of the high bid.
The potential seller will be given the high bid, cover, and the total number of bids. If a bid wanted item is marked for sale after the Firm time and the high bid pulls their bid, the cover bid is owned the next call, assuming the seller indicated that they would be willing to sell them into the cover if the high bid faded.
All Sharp time items must be accompanied by a corresponding Firm time. There will be no exceptions to this rule. All time designations on bid wanted items are to be Eastern time zone. Further, it imperative that a Client understand that it is RW Smith policy not to accept late bids on an item that they have designated as a Sharp/Firm bid wanted - no exceptions.
RW Smith maintains a five-minute internal grace period that is built into the trading system. The sole reason for the internal grace period is that the firm typically receives Sharp/Firm bid wanted lists (as opposed to single item bid wanteds) and bidding clients typically turn their bids in immediately prior to the close of bidding: the Sharp time. It generally takes RW Smith brokers a few minutes to enter these on time. Bids must be received by the Sharp time - the grace period does not apply to bidders, only to internal entry of on-time bids and web-transferred bids. There are no exceptions to this five-minute internal grace period and there are no overrides built into the trading system.