FSS
Federal Signal Corp.
stock NYSE

It’s not only that they don’t „want“ the hassle. It’s a bit more complex:
Most clearing systems have a hard time handling mixed deliverables (Warrants + Stock in this case).
If you have a standard option contract, pricing it is „relatively“ easy due to the underlying only being stocks.
If you have mixed deliverables it get‘s quite tricky. Even more in this case because the addendum to the option is a warrant dividend.
Now to understand why this is tricky we have to understand what a warrant is:
It’s the right to buy 1 share of GME for a set price until it expires. Sounds familiar, right? It’s pretty much a option only that the exercising partner is GME in itself.
So now as broker you would have to price a option whose underlying is a „option“.
See why this will get complicated?
There are also regularly reasons for brokers to handle it this way, the FSS wants broker to only handle simple standardized underlying. While complex deliverables can be possible, they are heavily regulated and need a permit. Those take time, the announcement isn’t that far back.
Looking at all this it’s most likely just risk mitigation from KSI.
Liquidation in that sense means that the broker is selling you’re position on the date mentioned in the notice at market price. Note that this doesn’t imply that he’s selling it at close.
After that you’re getting the cash value.
You’re also free to sell yourself until the due date.
You also will (most likely) be able to trade GME options after the capital measurement ( options that at written after it do NOT contain the warrant component)

It’s not only that they don’t „want“ the hassle. It’s a bit more complex:
Most clearing systems have a hard time handling mixed deliverables (Warrants + Stock in this case).
If you have a standard option contract, pricing it is „relatively“ easy due to the underlying only being stocks.
If you have mixed deliverables it get‘s quite tricky. Even more in this case because the addendum to the option is a warrant dividend.
Now to understand why this is tricky we have to understand what a warrant is:
It’s the right to buy 1 share of GME for a set price until it expires. Sounds familiar, right? It’s pretty much a option only that the exercising partner is GME in itself.
So now as broker you would have to price a option whose underlying is a „option“.
See why this will get complicated?
There are also regularly reasons for brokers to handle it this way, the FSS wants broker to only handle simple standardized underlying. While complex deliverables can be possible, they are heavily regulated and need a permit. Those take time, the announcement isn’t that far back.
Looking at all this it’s most likely just risk mitigation from KSI.
Liquidation in that sense means that the broker is selling you’re position on the date mentioned in the notice at market price. Note that this doesn’t imply that he’s selling it at close.
After that you’re getting the cash value.
You’re also free to sell yourself until the due date.
You also will (most likely) be able to trade GME options after the capital measurement ( options that at written after it do NOT contain the warrant component)