ASX 24 Participants are advised that amendments will be made to the Operating Rules Procedures 4022(b) to provide some clarification on the scope of User Defined Combinations (UDCs) that participants are permitted to create using the Trading Platform with the addition of an Explanatory Note.

These updates to the Operating Rule Procedures are designed to provide additional clarity regarding the types of UDCs that are considered to replicate existing Market Operator Defined Strategy Spread Orders and may therefore not be permitted.

 Explanatory Note

User Defined Strategy Orders with the same expiring contracts as an existing Market Operator Defined Strategy Spread Order, in any combination, regardless of a fixed price leg, ratio or additional legs, will be deemed to resemble Order functionality which already exists in the Trading Platform. Note that these factors are not exhaustive and the Market Operator will therefore assess the features of a User Defined Strategy Order in making a determination of resemblance.

These amendments are intended to support orderly trading and ensure consistent use of available strategy order functionality. Participants are encouraged to review the updated procedures to ensure their systems and processes reflect these clarifications.

 Below are examples of UDCs that will no longer be permitted under the amended procedures:

• UDC_EXAMPLE 1 (Rejected - YT legs an existing combo)
  • BUY 1 YTU5
  • SELL 1 YTZ5
  • BUY 1 IRU5
• UDC_EXAMPLE 2 (Rejected - Existing combo)
  • BUY 1 YTU5 (Fixed Price 95.500)
  • SELL 1 YTZ5
• UDC_EXAMPLE 3 (Rejected - YT/XT legs an existing combo)
  • BUY 1 YTU5
  • SELL 1 XTU5
• UDC_EXAMPLE 4 (Rejected - Existing combo)
  • BUY 29 YTU5 (Fixed Price 96.240)
  • SELL 10 XTU5
• UDC_EXAMPLE 5 (Rejected - Both legs are a combo)
  • BUY 1 HNM7
  • SELL 1 HQM7
• UDC_EXAMPLE 6  (Rejected - Existing combo)*
  • BUY 1 IRM5
  • SELL 1 IRU5

 *Would be permissible in Buy/Buy configuration

Butterly strategies not listed as Market Operator Defined combinations can be created as UDCs. 

These examples are intended to assist participants in understanding how the rules will be applied but are not exhaustive. ASX will continue to assess all UDCs on a case-by-case basis to determine whether they fall within the scope of permitted combinations.

Trade Cancellation Fee

Following this review, Participants are also advised that, in the event of a trade cancellation involving a User Defined Combination, the standard trade cancellation fee will now apply.

ASX is targeting for the amended ASX 24 Operating Rules Procedure 4022(b) to be effective from late November 2025. A further update will be provided with the confirmed date.

What do I need to do by when?

Further information related to the set up and use of UDCs can be found in the ASX 24 User Defined Combinations document available here, and the Participant Education – UDCs here.

Need more information?

Issued by

Market Operations

Contact information

tradingoperations@asx.com.au

1300 655 560

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