Which case requires a Special Price flag?

• A. VWAP
• B. Daily price update
• C. Settlement adjustment
• D. Stop order

Answer: (A)

Special Price flag is used when the price isn't a single, directly quoted market price but a value derived from another process. VWAP, the volume-weighted average price, fits this: it’s calculated over a period by weighting prices by traded volume, so it’s a reference price rather than one instantaneous execution price. Because this price comes from a calculation across many trades, the system flags it to treat it as a special price for matching, reporting, and settlement purposes.

Other scenarios involve standard price updates or orders with simple triggers. A daily price update is just refreshing the current price, and a settlement adjustment is a post-trade adjustment, not a calculated reference price. A stop order is a conditional instruction tied to price movement, not a calculated benchmark price. Thus, VWAP is the case that requires a Special Price flag.