Error Trade Handling Procedures 
21/01/2016 
 

Exchange Participants that are original parties to a transaction on HKATS can file error trade claims to the Exchange if the trades are deviated from the established Error Trade Price Parameters.

 


Such claims shall be processed only in accordance with the following procedures:

   

 

1.

The claim must be made no later than 10 minutes after the trade is executed if it is a single leg futures or index options trade. In cases involving stock options trades or combination trades comprising index futures and/or index options, the claim has to be made within 30 minutes.

 

 

 

 

2.

After receiving a claim, HKEX will immediately broadcast an alert on the derivatives market's trading system about the claim and the possible cancellation of the trade.

 

 

 

 

3.

If the parties to the trade agree within 10 minutes after the alert is broadcast that it is an error trade, and if HKEX receives no objections from Exchange Participants within the same 10-minute period, the trade will be cancelled.

 

 

 

 

4.

If within 10 minutes after the alert is broadcast, the parties to the trade do not agree to its cancellation, if HKEX receives objections from Exchange Participants or if not all parties to the trade can be contacted, a special HKATS Error Trade Review Panel, comprised of members of HKEX's staff, will be convened immediately to review the claim and decide within 10 minutes (unless this is impractical) whether or not the trade will be cancelled. 

In reaching its decision, the panel may consider all facts, including market conditions before, during, and after the transaction. Decisions by the panel are binding on all parties to the trade and will be broadcast on all HKATS workstations as soon as they are made. The panel's decisions are final.

 

 

 

 

5.

Exchange Participants are required to pay a fee of $3,000 for each error trade claim.

For details, please refer to HKFE Rule 819B under Rules of the Futures Exchange for Futures & Index Options and Options Trading Rule 540 under Options Trading Rules of the Stock Exchange for Stock Options.