The mechanism shall be applicable to Proprietary (PRO), Client (CLI) AND custodial participant orders.

Transcription

1 NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED Circular to all trading and clearing members of the Exchange Circular No. : NCDEX/TECHNOLOGY-020/2016/144 Date : June 22, 2016 Subject : Mock Trading Session for Prevention of Self-trade and de-commissioning of older versions of NEXTRA exe The Exchange proposes to introduce a new facility for prevention of self-trades. s are requested to note the following points regarding self-trade prevention - If an active order is likely to match with a passive order belonging to the same member-client or same member-proprietary combination in the same order book, then such an order (full or partial, as the case may be) shall be cancelled by the exchange with rejection message Order cancelled by the System.' The mechanism shall be applicable to Proprietary (PRO), Client (CLI) AND custodial participant orders. The mechanism shall be applicable only during matching. s are advised to take due precaution to prevent self-trade while performing trade modification. The detailed FAQs on Self Trade Prevention mechanism is available in Annexure A. s are also requested to note that, further to the circular no. NCDEX/TECHNOLOGY- 014/2016/124, older versions of NEXTRA exes (Version & Version ) will be decommissioned from Monday, June 27, s still using older versions of NEXTRA exes are advised to migrate to the latest version which is a common exe for both, dealers as well as corporate manager functions. For the benefit of the s, Exchange is pleased to announce a mock trading session for prevention of self-trade on Saturday, June 25, s are requested to note that they will NOT be able to participate in the mock using older versions of NEXTRA exes (Version & Version ). s may download new version of NEXTRA from Extranet Common folder. Please refer Annexure B for more details. Participation in this trading mock session is compulsory for all the members of the Exchange. 1 / 8

2 Schedule for the Mock Trading Session: Date Saturday, June 25, 2016 Login Allowed Pre-open Session for non-global & Global commodities Trade modification time for non-global & global Re-login and live time From 9:30 A.M onwards 10:00 A.M 12:30 P.M 12:30 P.M 12:40 P.M 2:30 P.M 3:00 P.M s are requested to note that, upon successful completion of mock, prevention of self- trade facility will be made LIVE effective Monday, June 27, Also, members will be able to participate in LIVE trading ONLY using the latest version of NEXTRA exe (Version ). For and on behalf of National Commodity & Derivatives Exchange Limited Anand Iyer Chief Information Officer For further information / clarifications, please contact 1. Customer Service Group on toll free number: Customer Service Group by to : askus@ncdex.com 2 / 8

3 Annexure A FAQs on Self-Trade Prevention (STP) mechanism 1. What is self-trade prevention (STP) mechanism? If an active order is likely to match with a passive order belonging to the same member-client or same member-proprietary combination in the same order book originating from same or different trading terminal of the member, then such an order (full or partial as the case may be) shall be cancelled. 2. For which order types is STP applicable? STP is applicable for all Day, GTD, GTC and IOC order types; limit, market and stop loss orders. 3. For which symbol & session is STP applicable? STP is applicable to all symbols and orders entered in continuous session (Normal Market). 4. How does STP mechanism work? STP shall be done at the time of matching, if an active order is likely to match with a passive order belonging to the same member-client or same member-proprietary combination in the same order book originating from same or different trading terminal of the member. Such orders shall be cancelled. 5. How does STP mechanism work in case of stop loss orders? Once a stop loss order is triggered or is modified, such that it gets triggered, and it becomes an active limit / market order, the STP mechanism as explained above shall become applicable. 6. How does STP mechanism work in case of order modification? If a passive order is modified, it becomes an active limit / market order and the STP mechanism as explained above shall become applicable. 7. How does STP mechanism work during trade modification? STP mechanism shall not be applicable during trade modification. s have to take due precaution while performing trade modification to prevent self-trade. 8. How will the member/broker get to know that his order is cancelled due to STP? The rejection message for orders cancelled due to STP shall be Order cancelled by the System 3 / 8

4 9. How will STP be applicable on spread orders? Currently, STP is not applicable on spread DAY orders. STP check will happen only for normal leg orders. However, in case of Spread IOC orders the check for STP will be performed. Example 1: Consider the below orders: Passive: 1111 Buy Pro Buy Cli CL Buy Cli CL Active (client order): 1111 Sell Cli CL The STP logic shall be as below: - The active order shall get partially traded (30 qty.) against the first three passive orders - For the 4th passive order since the member-client combination is the same as that of the active order, the remaining active sell order (20 qty.) shall be cancelled. 4 / 8

5 - The outstanding passive orders shall be: Example 2: Consider the below orders: Passive: 1111 Buy Cli CL Buy Cli CL Buy Pro Active (client order): 1111 Sell Pro The STP logic shall be as below: - The active order shall get partially traded (30 qty.) against the first three passive orders 5 / 8

6 - For the 4th passive order since the member-pro combination is the same as that of the active order, the remaining active sell order (20 qty.) shall be cancelled. - The outstanding passive orders shall be: 1111 Buy Pro Example 3: Consider the below orders: Passive: CP code 1111 Buy Cli CL Buy Cli CL2 NCDXRUC Buy Pro Active (client order): CP 1111 Sell Cli CL2 NCDXRUC / 8

7 The STP logic shall be as below: - The active order shall get partially traded (10 qty.) against the first passive order - For the 2nd passive order since the member-cli combination is the same as that of the active order, the remaining active sell order (40 qty.) shall be cancelled. - The outstanding passive orders shall be: Passive: CP code 1111 Buy Cli CL2 NCDXRUC Buy Pro / 8

8 Annexure B Download Path From Extranet ISP Server: Log on to Extranet Go to Common>NCDEXDocuments>NEXTRA>CORPMANAGER\Internet Download NEXTRA_ _INTERNET.zip Go to Common>NCDEXDocuments>NEXTRA>CORPMANAGER\VSAT&LL Download NEXTRA_ _VSAT.zip From NCFE: Log on to NCFE Go to Downloads>Download Files>NEXTRA>CORPMANAGER\Internet Download NEXTRA_ _INTERNET.zip Go to Downloads>Download Files> NEXTRA>CORPMANAGER\VSAT&LL Download NEXTRA_ _VSAT.zip Download Help Doc. To download Help Doc from Extranet ISP Server: Log on to Extranet Go to Common>NCDEXDocuments>Nextra>HelpDocs Log on to NCFE Go to Downloads>Download Files>Nextra >HelpDocs 8 / 8