Circular No: ACE/TECH-006/2011/108 Date: November 04, 2011 In-house Automated Trading System/ Procurement of Automated Trading System from non-empanelled vendor In terms of the Bye Laws, Rules and Business Rules of the Exchange, the members of the Exchange are notified as under: The Exchange vide its Circular No: ACE/TECH-001/2011/015 dated February 14, 2011 introduced Automated Trading facility thereby allowing members of the Exchange to procure software from approved CTCL vendors to trade on the Ace Trading System. The Exchange has now decided to allow Automated Trading through in-house developed Automated Trading System or procure the Automated Trading System from a non-empanelled vendor subject to conditions as specified in this Circular and other conditions as may be specified by the Exchange from time to time. The term `Automated Trading for the purpose of this Circular shall mean any software or program facility by the use of which, upon the fulfillment of certain specified parameters, without the necessity of manual entry of orders, buy/sell orders are automatically generated and entered by the software / program facility through an Automated Trading System developed in-house or procured from a non-empanelled vendor into the Ace Trading System to be matched by the Exchange s system. Trading members may avail said Automated Trading facility subject to following conditions: Members shall install the Automated Trading facility at their location only after ensuring all the requirements stipulated by the Exchange in this regard have been complied with.
Members shall obtain prior written permission of the Exchange for introduction and any changes in the software for the purpose of availing Automated Trading facility. Any failure to do so shall entail disciplinary action against the Members by the Exchange as per the Exchange s Rules, Bye-laws and Business Rules or any directives, Circulars issued thereunder by the Exchange from time to time All automated trading orders need to be placed through unique User ID identified for this purpose and all automated trading orders should be placed in the system through these IDs only. The Members shall be liable to pay to the Exchange such one time charges as well as annual charges as may be prescribed by the Exchange from time to time. The Automated Trading facility shall be subject to System Audit as may be prescribed by the Exchange. Member shall execute, sign and subscribe to such others documents, papers, agreement, covenants, bonds, and / or undertakings as may be prescribed or required by the Exchange from time to time. In view of above, the condition appearing at paragraph no. 13 (e) of the undertaking executed by the Members pursuant to Circular no. ACE/TECH- 005/2010/033 dated November 24, 2010 of the Exchange will stand relaxed to that extent to Members who will be permitted Automated Trading. Further, the Undertaking provided by the Exchange vide its Circular no. ACE/TECH- 001/2011/015 dated February 14, 2011 shall stand amended to the extent provided in Annexure-I to this Circular. Exchange reserves the right to withdraw or modify this facility in respect of all or any commodity, generally or specifically for any Member or for any client of any Member. Members shall ensure that the trades routed through Automated Trading facility do not result into abnormal trades or manipulative trades. The documents to be submitted by the Members for availing the facility of Automated
Trading are as follows: Sr. No. Document Annexure 1. Undertaking Annexure I 2. Declaration Technical Details Annexure II 3. Automated Trading new user application form Annexure III 4. Application for conversion of Authorized User from Ace-TWS Annexure IV to Automated Trading User 5. Application for change of Approved Automated Trading User Annexure V For and on behalf of Ace Derivatives & Commodity Exchange Ltd. Ashish Naik Head - IT Applications For any clarifications or assistance, please contact the Customer Service Group at 022-6670 9201 or send us an email at services@aceindia.com
Annexure I UNDERTAKING AUTOMATED TRADING FACILITY INSTRUCTIONS TO FILL UNDERTAKING BY THE MEMBER FOR USING AUTOMATED TRADING FACILITY OF THE EXCHANGE. 1. This Undertaking has to be either franked or executed on a Non-Judicial stamp paper of Rs. 300/- or the value prevailing in the State, whichever is higher. 2. Please ensure that each and every blank in the Undertaking is duly filled. 3. Please ensure that each and every handwritten detail filled is countersigned by the authorized signatory (ies). 4. Each and every page to be signed and rubber stamped. 5. Obtain signature of two witnesses on the last page of Undertaking. 6. In case of a corporate entity affix the common seal of the company on the last page of the Undertaking.
I/We..., an individual /a firm registered under the Indian Partnership Act, 1932 / a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008/ a Company / body corporate incorporated under the Companies Act of 1956/. Act, 19.., and residing at / having registered office. at.. - give this UNDERTAKING ( Undertaking ) on this. day of 20. at... IN FAVOUR of Ace Derivatives and Commodity Exchange Limited, a company incorporated under the Companies Act of 1956, having its registered office at Rawat ni Wadi, Nr. Central Bank of India, Gandhi Road, Ahmedabad, Gujarat, PIN 380001 (hereinafter called ACE and /or Exchange) WHEREAS, a) ACE has provided the trading software to enable its Members to trade. b) ACE provides a Computer to Computer Link (hereinafter referred to as the CTCL ) facility for order entry, receipt of order and trade confirmation and also for receipt of data relating to its trade quotations by using their own trading front end software in order to trade on ACE trading system. c) ACE also permits the users of CTCL, an AUTOMATED TRADING facility (hereinafter referred to as the ATF ) which mean any software or facility by the use of which, upon the fulfillment of certain specified parameters, without the necessity of manual entry of orders, buy/sell orders are automatically generated and entered by the software/program facility into the ACE trading system to be matched by the Exchange s system and such permission is subject to terms and conditions as may be specified by ACE from time to time. d) ACE allows to avail the ATF by fulfilling all the terms and conditions as may be prescribed from time to time at its discretion.
NOW THEREFORE IN CONSIDERATION OF ACE having agreed to allow me / us to avail the ATF, I / we hereby IRREVOCABLY AND UNCONDITIONALLY UNDERTAKE and agree to abide by and be bound by the following terms and conditions: 1. That I / We shall make the ATF available only to the persons ( Approved Persons ) only after obtaining the prior written permission of ACE and subject to such terms and conditions as may be prescribed by ACE from time to time. 2. That in addition to such other terms and conditions as may be prescribed from time to time by ACE, all the provisions of the Byelaws, Rules, Business Rules and Circulars relating to use and operation of the ACE Trading System shall also mutatis mutandis become applicable to the use and operation of the ATF. 3. That notwithstanding anything contained in this Undertaking, all my / our liabilities and obligations as a Member of ACE shall not be affected nor shall be prejudiced in any manner whatsoever, by using ATF for entering orders on the trading system of ACE. 4. That without prejudice to the generality of above clause (3) of this Undertaking, I / we shall be responsible to settle all the trades executed by the Approved Persons on my / our behalf whether such trades were executed with or without my permission / knowledge and that I shall be bound to complete / fulfill all my / our obligations / liabilities / commitments arising out of the trades executed by the Approved Persons on my behalf, including the trades executed by using ATF. 5. I/We agree that the Exchange shall be entitled to conduct audit/inspection of the ATF, at any time in its absolute discretion. 6. I/We shall not modify the software/algorithm for ATF as approved by ACE without prior approval of ACE. 7. I/We shall be solely responsible for the network infrastructure and connectivity for
availing ATF made available to me/us. 8. I/We shall be solely responsible for all the losses, damages or other costs and consequences arising in any manner for the use of ATF and shall not hold ACE responsible in any manner whatsoever. 9. I/We shall adhere to the connectivity diagram approved by ACE and shall not make any changes in the same. 10. I/We shall be solely responsible and liable for the consequences in case of any breach of this Undertaking and ACE shall be entitled to take such appropriate action as deem fit against me/us. 11. I/We shall not extend ATF to any other person/entity and/or premises unless I/we obtain prior written permission from ACE. 12. We also confirm that I/we have not obtained nor applied for any other User ID in the name of the Approved Persons/user/s and that the User ID allotted shall be utilized by the Approved Persons/user/s only to access the ACE trading system 13. I/We undertake to ensure that access shall be given only to Approved Persons and also to evolve and establish a method to ensure that non Approved Persons cannot access the system. 14. I/ we shall maintain all systems logs pertaining to the ATF facility and make the same available for inspection by ACE through its Officers/agents at any time at the sole discretion of ACE. 15. That ACE, at its absolute discretion, may make the ATF available to me / us only from the date of enabling the ATF, till such time as it may deem fit and further that the ATF may at any time be suspended/withdrawn by ACE at its discretion without giving me / us any notice or any reasons whatsoever.
16. That I/We agree that the CTCL facility extended by ATF if made available to me/us by ACE will be on a non-exclusive basis only and that the same may be made available by ACE, at its discretion, to any other Trading Member whomsoever on such terms and conditions as it may deem fit. 17. That I/We may be entitled by giving one month s notice to request ACE to withdraw the ATF extended to me/us and such withdrawal shall be subject to such terms and conditions as may be prescribed by ACE including payment of such charges to ACE as may be decided by ACE at its discretion. I/We also agree and undertake to be bound by all transactions carried out through the ATF till the time the ATF is withdrawn pursuant to our request as aforesaid. 18. That I/We hereby bind ourselves to be conclusively responsible and liable for all acts, quotations made, transactions done, trades made or effected by my/our Approved Person through the ATF on the trading system of ACE in the same manner as if such acts, quotations, transactions, trade are done or effected by me/us for all purposes and I/we shall ensure that such Approved Person shall not execute any order on his/her own account or on account of anyone without such order having my/our prior approval in writing. I/We shall also ensure that the Approved Person will not function/place orders/deal on the trading system in any manner that would represent that the trades have been placed as a sub-broker. 19. I/We undertake to ensure that ACE is kept informed immediately on cessation of our association with the Approved Person and I/we shall seek the disablement of the User ID allotted under these presents. I/We shall be bound and hereby indemnify ACE against any disruption whether technical or otherwise to the trading system of ACE and against any liability or damages, claims, losses or, as may be suffered by ACE due to the provision of the ATF to us or by reason of use of the ATF by us/our Approved Person or on account of my/our non-compliance, contravention of any of the provisions of this Undertaking. Our indemnity shall survive the cessation of ATF to me/us in any manner. 20. That without prejudice to any other right under any law for the time being in force available to ACE or which may become applicable, ACE shall be vested with the
exclusive right, upon my/our non--compliance of any of the terms and conditions of this Undertaking or upon the termination, suspension of my/our trading membership or upon my/our ceasing to be a Member of ACE, to take, at its discretion, such actions, steps, proceedings, measures, decisions within such period of time and upon such terms and conditions as it may deem fit and that any such actions, steps, proceedings, measures, decisions may, inter alia, include denial of the ATF and / or take such disciplinary actions as it deems fit. 21. This Undertaking shall be binding upon my /our heirs, successors, legal representatives and assigns. 22. I / We shall execute, sign, and subscribe, to such other documents, papers, agreement, covenants, bonds, and / or undertakings as may be prescribed or required by ACE and Forward Market Commission from time to time. IN WITNESS WHEREOF this Undertaking is executed by the undersigned on the day, month, year and the place first mentioned above. Signed by, for and on behalf of: Before me WITNESSES Signature 1. Name Address: Signature 2. Name Address:
Annexure to Undertaking SCHEDULE I - NETWORK DIAGRAM (Kindly enclose your network architecture)
SCHEDULE II List of Approved Persons for Automated Trading Facility (in the following format) 1. Name of Person 2. Designation 3. Company name 4. Full Address 5. Tel No. 6. Fax No This shall be read as part and parcel of the Undertaking dated and is subject thereto.
Annexure II Declaration Technical Details (On the letter head of the Member) To, 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Dear Sir, In continuation of the Undertaking dated executed by me/us in favour of Ace Derivatives & Commodity Exchange Limited ( Exchange ) for availing the Automated Trading Facility, I/we hereby further declare/confirm that: 1. I/We shall ensure that Automated Trading Facility is used only by the persons in the manner as approved by the Exchange in writing. 2. I/We shall ensure that inflow of orders does not exceed 10 requests per second per CTCL User ID or as may be prescribed by the Exchange from time to time. 3. The Exchange, at its absolute discretion, may suspend/withdraw the Automated Trading Facility available to me/us at any time. Stamp & Signature of the Authorized Representative of the Member Date: Place:
Annexure III (On the Member s Letterhead) AUTOMATED TRADING NEW USER APPLICATION FORM To : 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Dear Sir, I/We (Name of the Member) do hereby communicate that we have purchased (Name of the Automated Trading product along with version no.) from (Name of the non-empanelled vendor) and found it to be satisfactory. 1. Member ID : 2. Our Registered Office address : 3. Status and Address of the office/ Regd. Office / Head Office / Dealing where terminal is located : 4. Dealing Office/Office Address : 5. Name and designation of the person in-charge of the above office : DETAILS OF THE AUTOMATED TRADING USER 1. Name of the person for whom this : application for allotment of User Id is made (expand all initials) 2. Testing performed on :
(Specify the period, if tested in the test environment) 3. Test User Id : I/We request you to enable the User ID for ATF in the live environment. I/We intend to discontinue using the existing software (date should not be more than 7 days after creation of the additional CTCL Id). I/We will be using this User ID for CTCL. along with the existing User ID Date: Place: Stamp & Signature of the authorized representative of the Member
Annexure IV (On letterhead of the Member) APPLICATION FOR CONVERSION OF AUTHORISED USER FROM ACE-TWS TO AUTOMATED TRADING USER Member ID: To, 4 th Floor, Infinity IT Park, Building No 4, Gen. A K Vaidya Marg, Malad East, Mumbai 400 097 Fax No.: 022-66709290 Dear Sir, I/We (Name of Member) hereby apply for change of Authorised User ID of Ace Trader TWS to CTCL AUTOMATED TRADING User ID. 1. User ID 2 Name of User 3. Address 4. Tel. No. 5. Fax No. 6. Email 7 User ID to be used for IBT YES/NO (Strikeout whichever is not applicable)
I/We hereby agree and bind myself/ourselves to be responsible for all acts, quotations made and transactions done or effected by the said Mr./Ms. as our Approved CTCL ATF User on the Trading system of the Ace Derivatives and Commodity Exchange Limited ( Exchange ). In case of the said Mr. / Ms. ceasing to be associated with me /us, I/we shall communicate the same to the Exchange along with related details and seek change/cancellation of the user ID so allotted against this application, as prescribed. I/We certify that I/we have not applied for any other user ID in the name of the said Mr./Ms.. The User ID so allotted shall be used by the said Mr. /Ms. only to access the Ace trading system. I/We certify that Approved User shall clear the Certification as may be prescribed by the Exchange. Name of Approved User: Signature of Approved User: For (Member Name) Signature Authorised Signatory Rubber stamp Date: Place:
Annexure V (On Member s Letter-Head) APPLICATION FOR CHANGE OF APPROVED AUTOMATED TRADING USER Member ID No.: To, 4 th Floor, Infinity IT Park, Building No 4, Gen. A K Vaidya Marg, Malad East, Mumbai 400 097 Fax No.: 022-66709290 Dear Sir, Sub: Application for Change of Approved Automated Trading User I/We (Member Name) request you to kindly change the details of User ID (User ID no) as mentioned, entirely at our risk and responsibility. User ID No. Existing User Name Proposed User Name Reason Head office/regd. Office/Dealing Office Address: 1. Status & Address of the office where terminal is to be located. City State Pin Code Phone No Fax No. Mobile No E Mail ID:
Name of the person for whom this 2. application for allotment of Automated Trading User ID is made (expand all initials) 3. Age of Approved user 4. Father s name of Approved user 5. Address of the Approved user 6. Qualification of Approved user 7. PAN of Approved user (Copy of PAN card to be attached) 8. Nationality of Approved user Relationship of the proposed User with 9. the Member Address City State Fax No. E Mail ID: Pin Code Phone No Mobile No 10. Connectivity Type (from where the proposed User shall operate) MPLS Leased Line (Wireline) MPLS Leased Line (Wireless) VSAT Internet 11. MPLS Leased Line/VSAT IP Address 12. Automated Trading User ID to be used on Internet (In case of Application for MPLS YES / NO (Strikeout whichever is not applicable)
Leased Line/VSAT User ID) 13. 14 15 No. of Existing User IDs at the above MPLS Leased Line / VSAT No. of CTCL Server IDs used at above MPLS Leased Line / VSAT New Automated Trading User ID to be used for IBT YES/NO (Strikeout whichever is not applicable) I/We hereby agree and bind myself/ourselves to be responsible for all acts, quotations made and transactions done or effected by the said Mr. /Ms. as our Approved User on the Trading system of the Ace Derivatives and Commodity Exchange Limited ( Exchange ). In case of the said Mr. / Ms. ceasing to be associated with me /us, I/we shall communicate the same to Exchange along with related details and seek change/cancellation in the user ID so allotted against this application, as prescribed. I/We certify that I/we have not applied for any other user ID in the name of the said Mr./Ms.. The User ID so allotted would be used by the said Mr. /Ms. only to access the Ace trading system. I/We certify that Approved User shall clear the Certification as may be prescribed by the Exchange. Name of Approved User: For (Name of Member) Signature of Approved User: Signature (with rubber stamp) Date: Place: Authorized Signatory