Practice Note 4.1.9 — Procedures for Order Withdrawal
|Issue Date||Cross Reference||Enquiries|
22 September 2006 and amended on 19 January 201519 January 2015.
Please contact Derivatives Market Control ("DMC"):
Telephone No. : 6236 8433
Facsimile No : 6536 6480
E-Mail Address : email@example.com
1.1 This Practice Note explains the circumstances, conditions and operational procedures pursuant to which the Exchange would assist Members to effect order withdrawals.
1.2 As a general practice, Trading 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 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 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 Member agrees that the Exchange has no liability for order withdrawals and related activities conducted on behalf of a Member.
2.3 The 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 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 Members may request the Exchange to withdraw orders at the following levels:
(a) individual order level; or
(b) firm-wide order level.
3. Operational Safeguards and Discrepancies
3.1 A Member shall comply with the instructions and directions issued by DMC when effecting order withdrawals as contemplated herein. DMC 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 DMC. Members are also required to comply with various operational safeguards and procedures as issued by DMC from time to time including matters relating to the:
(a) appointment of authorised firm coordinators by 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 DMC;
(c) submission of an order withdrawal form with the material information as requested by DMC; and
(d) processing of Requests at firm-wide order level and individual order levels.
3.3 If a Member finds any discrepancies between the order withdrawal form and the Request, the Member should notify DMC immediately with details of such discrepancies. Depending on the nature of the discrepancy, DMC would generally rely on the voice recording of the Request for its post-withdrawal investigations.