Trade Control Rules

As electronic systems become increasingly prevalent, US stock exchanges and self regulatory organizations (SROs) are implementing policies that will address the problem of clearly erroneous trades – defined as trades resulting from a market participant placing a transaction or a series of transactions that adversely affect the market price of a security.

Please note that with effect from 2nd May 2011, our US counterparty will implement trading rules control check on all orders being routed to their order management system

The control rules will check order size relative to a percentage of the stock’s 30 days average daily volume (ADV) – Rule 612 – Check the price of the order relative to a percentage parameter against the National Best Bid/Best Offer (NBBO) quote during core trading session – Rule 614 Initiate a Reject outcome should the above rules be breached

Should your US orders submitted through our online systems fail to pass the new control rules check, the orders will be rejected automatically by the system and error messages will be updated in the order status as below:

  1. Rule 612 – Order Size Exceed 10% of 30 Days Avg Daily Vol Check
    Order size for US trades exceeding 10% of the stock’s 30 days average daily volume will be rejected by
    the system
  2. Rule 614 – Limit orders at or below $5 per share would be permitted up to 10%, between $5 to $50 per share would be permitted up to 5% and with limits above $50 per share would only be permitted 3% marketability