Consultation Paper on the ASX 24 Trade Cancellation Policy

What's this about:
  • ASX 24 Market
  • Derivative Product
  • Futures
  • Options & ETOs
  • Interest Rate Futures
  • Trading
  • Energy
  • Grains
  • Commodities
  • Rates
  • Equity Derivatives
  • Compliance
  • Operations
  • Product
  • Risk
  • Rules
Notice reference number: 0032.20.01
Date published: 08/01/20
Effective as of: 08/01/20
Last updated: 08/01/20

On 8 January 2020, ASX released the consultation paper ASX 24 Trade Cancellation Policy: Proposals for change (Options and 20 Year Bond Futures) ASX Consultation Paper

ASX is consulting on two potential changes to the ASX 24 Cancellation Policy, being

  • The removal of the No Cancellation Ranges (NCR) for all exchange traded options (ETOs), including the Single Session Options.
  • Ammendment to the Extreme Trade Range (ETR) for the 20 Year Bond Futures product.

ASX is also seeking feedback on the current cancellation ranges for all other ASX 24 products.

ASX proposes, subject to feedback received through consultation, to:

  • Remove the NCR for ETOs to provide greater flexibility for market participants. This is in line with Trading Participant feedback and will further align the ASX 24 and ASX Trade Operating Rules Procedures.
  • Amend the ETR range of the 20 Year Treasury Bond Futures from 50 basis points to 25 basis points to reduce the likelihood of an error trade causing a negative impact on a participant. The reduced ETR price level will provide a balance between allowing a reasonable range where erroneous trades will be cancelled whilst not unnecessarily impacting trading activity on days with high levels of market volatility.
  • Assess whether the current cancellation ranges for all ASX 24 products are appropriate.

The paper can be accessed here or by clicking on the link above. 

What do I need to do by when?

Written submissions in response to the consultation paper are requested by Friday 28 February 2020.

Need more information?

For general enquiries, please contact:

Gary Hobourn, Senior Economic Analyst
+61 (02) 9227 0930


Issued by

Ben Jackson, General Manager, Market, Clearing and Settlement Operations
+61(02) 9256 0677