ASX confirms that Tailor Made Combinations (TMC) functionality will not be available on the ASX Trade platform prior to the expiry of Exchange Traded Options (ETOs) on 17 December 2020.
To facilitate the expiry and rolling of ETO positions, ASX is providing the following emergency amendment to ASX Operating Rule Procedure 4800 Part B (point 3): Special Crossing of Derivatives Only Combinations, for the period of 15 to 17 December 2020.
The decision to amend the procedure is based on feedback from customers. It will improve the efficiency of completing combination orders in expiry week, in addition to reducing the leg and price risk of dealing in individual series as opposed to the combination as a whole.
ASX continues to work with its technology provider, Nasdaq, and will shortly provide our forward plans on TMC functionality.
PART B SPECIAL CROSSINGS IN DERIVATIVES MARKET PRODUCTS
3A Temporary Exemption to Special Crossing of Derivative Only Combinations
(a) For 15,16 and 17 December 2020 only Special Size means: 30 lots for index options, 50 lots for ETOs where the option’s underlying value is $20 and over, and 100 lots where the option’s underlying value is under $20 – all regardless of premium value - if the following conditions are met:
(i) Within the Derivatives Only Combination 1 leg of the transaction must be expiring in that week;
(ii) A quote request is asked in each individual series and 15 seconds has elapsed before reporting;
(iii) The price reported in each series is within the bid/offer spread received from the initial quote request; and
(iv) Transactions must be reported with the code SPCT
Participants are advised to review the amended procedures. To obtain a copy of the current Market Maker contact list please email firstname.lastname@example.org
Ben Jackson - General Manager, Market Operations
T 1300 655 560 | (+61) 2 9256 0677