Dividends and splits and how they should adjust GTC quantities

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Imported from previous forum

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Aside from a very generic and ambiguous one-pager in the wiki, I could not find any specific information on how to adjust GTC orders for dividends and splits. The basics are clear: on sell stops and buy limits, change the quantity and/or price to reflect the new share value. The devil is in the details though. The quantity adjustments are supposed to be truncated to the nearest unit of trade (UOT), usually 100 for listed and NMS stocks. Here are some of the questions that I have been unable to find clear answers to:

  1. Which quantities should be adjusted (original order quantity, leaves quantity, executed quantity,…)?
  2. When adjusted leaves quantity becomes 0, should the order be killed or left as-is?
  3. Since the order quantity should be = leaves + executed, and leaves should be truncated to UOT, how should order quantity and executed quantity be adjusted to retain equality?

Here are examples to clarify the questions:

I. A GTC limit order is entered on date D to buy 1000 shares of stock X whose UOT is 100. On date D, 120 shares are executed leaving 880. On the night of date D+1 the stock splits 2 for 1. What should the adjusted quantities be on D+2 (order quantity, leaves quantity, executed quantity)?

II. A GTC limit order is entered on date D to buy 1000 shares of stock X whose UOT is 100. On date D, 960 shares are executed leaving 40. On the night of date D+1 the stock splits 2 for 1. What should the adjusted quantities be on D+2 (order quantity, leaves quantity, executed quantity)?