25-02-2022 07:24 PM - edited 01-03-2022 12:29 AM
This article provides details on:
This information does not provide guidance outside of the expectations explicitly set out in REP 708. A market outage translates to material impact and uncertainty when dealing with at-risk orders and has been a point of enquiry by clients.
ASIC REP 708 deals with the expectation for on-market participants to ensure the ability to submit 'new' orders to alternative trading venues, and not how at-risk orders are managed. At this time, there is no process or protocol for how open orders are to be managed by a market in the event of an outage (which may depend on the nature of the outage), and therefore this is intentionally not covered in this document.
Iress currently has data feeds and internal processes in place to support ASX BN1/BN4 messages. Iress is supportive of market operators improving their protocol for market outage information services. We will support any changing data feeds and work with relevant participants to ensure that any changes to anomaly signals are in line with their needs.
Iress will work with market operators to align our procedures for service reinstatement and ensure that our system supports the proposed workflows. We will ensure that we have the required procedures and processes in place to disseminate critical information to market participants where required. We will also support them to modify orders as needed to allow trading to resume.
In the event of a trading anomaly, Iress will incorporate any updated order and trade status data from market operators when they become available. Similar data is provided by other exchanges that Iress uses to reconcile orders at the exchange and make status changes to allow continued trading.
In addition to our response in E1, Iress will be improving the way we provide incident information to our clients. This includes live status page updates through our Client Portal.
Iress will support market operators’ newly created intraday checkpoint protocols and ensure that our trading platform supports the market initiated events defined in this protocol. We will also provide clients with checkpoint information updates through our Client Portal.
Iress’ IOS+ Limit Engine provides the capability to hard stop, or route orders to review, based on defined criteria (such as order types, execution instructions, and security types). Placeholder order type limits can be configured on the IOS+ Server, which can then be enabled by IOS+ Administrators if those order types are disabled for trading at the exchange.
Contact your Iress account executive for more information or assistance to configure placeholder limits suitable for your specific order flow.
Iress will continue to align with relevant market operator testing and conformance processes. We will also modify our verification processes in line with any changes that are made accordingly. Iress will continue to support clients to meet their obligations by helping them to successfully navigate testing processes, where required.
Refer to E7.
Iress allows participants to route new orders to alternative markets. This includes orders created by an operator and orders created via one of the automated routing features. While specific configuration changes are dependent on a participant's actual setup, we have outlined below a general overview of how to reconfigure Iress to route to alternative markets.
Provided the participant has a destination for the alternative market, the operator can manually create an order to that destination via the standard order entry.
Participants that use either the AUTODESK or Best Market Router (BMR) to route orders to markets automatically will need to apply some configuration changes to route orders to specific markets in the event of a market outage.
Clients can speak with their Iress account manager for assistance in understanding which configuration options would suit their specific operational procedures.
The AUTODESK destination routes orders to the desired market via destination mapping configuration. The destination mapping configuration can be viewed and changed within the IOS+ Administration command.
Below is a screenshot of changing ASX listed securities routing from ASX destination to the Chi-X destination. A user will need to have administrative access in order to change these values.
This change takes effect immediately. All new AUTODESK orders created after the configuration change is saved will be sent to the newly configured destination.
To ensure that new orders are routed to the alternative market, Iress recommends that the problematic market is disabled from the BMR. This change takes effect without requiring a restart.
BMR will direct new orders to the alternate market that is configured according to priority ranking.
Note, any orders that are still sitting at rest or queued to the market that is in an outage, will not be canceled. Please see the response to E12 for details on how to deal with these orders.
Clients need to ensure that when the market is restored, the BMR configuration is updated to re-enable the market.
The linked document below is a client ‘How to guide’ that provides more detail, outlining the steps that need to be taken to reconfigure the Iress BMR.
Clients that utilise both AUTODESK and BMR in their order flow have two options for allowing new client order flow to the alternative market.
They can update the BMR configuration as per the above BMR section. Alternatively, they can configure an additional two single market BMR destinations. In the event of a market outage, they can update the destination mapping of AUTODESK to route the orders to the desired market specific BMR.
In general, setting up the multiple single market BMR is generally the preferred solution but it is dependent on the participant’s exact setup. Please contact your account executive for further information should you need to discuss your specific setup.
Refer to E9
Refer to E9
E9 describes changes to Iress’ systems configuration to submit new orders to an alternative trading venue.
However, if client orders are already committed and resting on an inaccessible market and the orders cannot be canceled, re-routing those orders to an alternative trading venue may breach overfill checks. Iress provides a method to ‘move’ the original order to a holding account and fulfill the client order on an alternate trading venue.
The IOS+ feature to "Move Order and Cancel" At-Risk orders is available when the destination is offline. Move and cancel will inactivate the exchange order in the client account and move the record to an error account with the cancel request queued to submit to the exchange when the destination comes back online.
Using the "Move Order and Cancel" feature allows the IOS+ users to free up the committed volume to the client so that the order can be sent to an alternate trading venue. The "Move Order and Cancel" feature operates on single or multiple orders. Contact your Iress account executive if you would like to enable the "Move Order and Cancel" feature for your IOS+ destinations and set up the error account.
For standard care order flow with a DESK parent, the recommended procedure is:
For DMA order flow where the client is creating the order to market directly, the recommended procedure is:
For AUTODESK order flow where the client order automatically routes to market, the recommended procedure is:
For assistance in how to configure IOS+to support this functionality please contact your Iress account executive. Alternatively, please refer to the Iress IOS+ Help section ‘Managing Orders -> Cancel Orders in IOS+ -> Cancel an order for an offline destination’ for more details on using the “Move Order and Cancel” feature.
Iress conducts regular BCP tests with participants upon request (opt in basis). These typically test outage scenarios for different components of Iress’ OMS system. In addition, Iress assists participants in market operator BCP testing by testing different outage scenarios for connectivity to the market using current production setup. Please contact your Iress account manager if you would like to get specific information about your last Iress and/or market BCP or what BCP alternatives are available to you.
NA - Iress does not supply crossing services.
If the destination for the primary market is offline, users can specify the destination for the alternate market when creating their trade report.
Iress will engage with any relevant participants on how best to distribute participant-specific market outage information. Iress is not planning to add any automated distribution of participants’ status to connected buy-side clients.
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