Trading Participants are advised of the following changes to the ASX and ASX 24 Operating Rules Procedures:
Excessive Order Limits – removal of the 50:1 order to trade ratio
ASX Operating Rules 4025(a) and ASX 24 Operating Rules 4025 (the “Rule”), requires Trading Participants to ensure they do not enter Orders into the relevant Trading Platform that would be considered excessive. Under the Procedures a ratio higher than or equal to 50:1, in relation to orders entered versus trades executed, is considered excessive (the “Ratio”).
The Ratio initially provided a benchmark for participants as to what was considered reasonable for system use. ASX has subsequently reviewed the Ratio in line with market and system developments, and has determined it is no longer required. ASX will however continue to monitor participants on the ASX and ASX 24 markets to ensure trading is in alignment with ASX’s Fair, Orderly and Transparent framework.
ASX is not making any changes to ASX Operating Rule and Procedure 4025(b) in respect of the creation of excessive Tailor-Made Combinations nor ASX Operating Rule and Procedure 4025(c) relating to the issuance of an excessive number of Quote Requests.
Trading Participants are reminded of their obligation to ensure they do not engage in activity which results in a Market for a Product being unfair and/or disorderly, or failing to do anything where that failure has the same effect.
These changes become effective on and from 4 January 2022.
No Action Required
General Manager, Participants Compliance