ASX and ASX 24 Operating Rules Procedures – Removal of 50:1 Order to Trade Ratio

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  • ASX 24 Market
  • ASX Market
  • Equities
  • Commodities
  • Equity Derivatives
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  • Rules
Notice reference number: 1706.21.11
Date published: 25/11/21
Effective as of: 04/01/22
Last updated: 25/11/21

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.

A copy of the amendments to the ASX Operating Rules Procedures is available here and amendments to the ASX 24 Operating Rules Procedures is available here.

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.

Effective date

These changes become effective on and from 4 January 2022.

What do I need to do by when?

No Action Required

Need more information?

Issued by

Nikki Swinson,
General Manager, Participants Compliance

Contact information

+61 (02)  9227 0000