Which statement about suspension of futures and options trading is incorrect?

The correct answer identifies a misunderstanding about the nature of how futures trading resumes after a trading suspension. When trading is suspended, it typically indicates significant market concerns or disruptions that require a halt to trading activity for a period. Usually, when trading resumes, it is intended to allow the market to adjust to whatever situation caused the suspension in the first place. However, futures trading does not always resume within the same trading phase during which the suspension was triggered. It may be possible for trading to resume in a subsequent phase or session, depending on the circumstances surrounding the suspension.

Understanding the implications of suspension is crucial since it affects the execution and management of existing orders and open positions. For example, all existing orders and quotes being deleted is a common protocol to ensure a fair market when trading resumes. Additionally, during a suspension, the inability to exercise open positions and close out positions are standard practices to protect market integrity and prevent unfair advantages.