Which statement regarding EOD processing is false?

The correct choice is based on the fact that during End of Day (EOD) processing, pending Trades Execution Service (TES) trades typically do not carry over into the next business day as a general rule; they are eliminated. This ensures that only the most current and valid trades and orders are carried forward, maintaining an accurate trading environment for the next day.

In contrast, pending TES trades being transferred to the next business day would imply that we are preserving trades that are unresolved or in a pending state, which is not characteristic of standard EOD processes. The purpose of EOD processing is to finalize the trading activities of the day, not to carry over pending elements that may not accurately represent the current trading status.

The other options reflect standard practices in EOD processing. For example, contracts that have expired are indeed deleted, ensuring traders are not left with positions that are no longer valid. Similarly, orders whose validity has elapsed are not carried forward; they represent instructions that have become outdated. Thus, the operations during EOD processing focus on clearing out anything that does not reflect live trades for efficiency and accuracy.