Practice Note 4.1.9 — Procedures for Order Withdrawal
|Issue Date||Cross Reference||Enquiries|
22 September 2006.
Please contact Derivatives Market Control ("DMC"):
Telephone No. : 6236 8433
Facsimile No : 6536 6480
E-Mail Address : firstname.lastname@example.org
1.1 This Practice Note explains the circumstances, conditions and operational procedures pursuant to which the Exchange would assist Clearing Members to effect order withdrawals.
1.2 As a general practice, Members who face difficulties in effecting their order withdrawals should seek the assistance of their respective Clearing Members to withdraw their orders. For this purpose and where possible, Clearing Members should set up appropriate supervisory access to the trading system to administer such requests.
2. Technical Fault and Withdrawal by Exchange on Reasonable Efforts Basis
2.1 In the event of Technical Faults, the Exchange would assist in effecting order withdrawals at the request of the Clearing Members and subject to the terms and procedures set forth below. "Technical Faults" as used herein refers to any loss of connection to Exchange Systems which prevents a Clearing Member from effecting order withdrawals without the Exchange's assistance.
2.2 Order withdrawal by the Exchange in the event of Technical Faults would be effected on a reasonable endeavours basis. The Clearing Member agrees that the Exchange has no liability for order withdrawals and related activities conducted on behalf of a Member.
2.3 The Clearing Member indemnifies and will keep indemnified the Exchange against all actions, proceedings, claims, demands, damages, costs, expenses and any other amounts against or incurred by the Exchange arising out of or in connection with any action taken or any inaction by the Exchange, or any of the Exchange's officers, employees, agents, delegates or contractors with respect to such order withdrawals.
2.4 For the avoidance of doubt, nothing in this Practice Note should be construed as limiting a Clearing Member's obligation to install and maintain a robust and technically sound system, risk management processes or business continuity plans as required under the Rules or any applicable laws.
2.5 Clearing Members may request the Exchange to withdraw orders at the following levels:
(a) individual order level; or
(b) access ID level.
3. Operational Safeguards and Discrepancies
3.1 A Clearing Member shall comply with the instructions and directions issued by MCD when effecting order withdrawals as contemplated herein. MCD also reserves the right to refuse any such request without providing any reason.
3.2 All verbal requests for order withdrawals ("Request") shall be recorded by MCD. Clearing Members are also required to comply with various operational safeguards and procedures as issued by MCD from time to time including matters relating to the:
(a) appointment of authorised firm coordinators by Clearing Members to effect order withdrawals and the provision of authentication details in connection therewith;
(b) making of a Request via telephone numbers as designated by MCD;
(c) submission of an order withdrawal form with the material information as requested by MCD; and
(d) processing of Requests at access ID level and individual order levels.
3.3 If a Clearing Member finds any discrepancies between the order withdrawal form and the Request, the Clearing Member should notify MCD immediately with details of such discrepancies. Depending on the nature of the discrepancy, MCD would generally rely on the voice recording of the Request for its post-withdrawal investigations.