Frequently Asked Questions
US Markets
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 (1) Check order size relative to a percentage of the stock’s 30-days average daily volume (ADV); (2) Check the price of the order relative to a percentage parameter against the National Best Bid/Best Offer (NBBO) quote during core trading session. If these rules are violated, the system will automatically reject the orders submitted through our online systems.
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