1.1
Rule 4.9.3 provides that a Trading Member must have processes in place to minimise and manage conflicts of interest, including but not limited to separating its front and back office functions.
Added on 3 June 20193 June 2019.
1.2
This Practice Note provides guidance on how front office and back office functions of Trading Members should be separated.
Added on 3 June 20193 June 2019.
2.1
The purpose of separating a Trading Member's various key functions is to minimise and manage conflicts of interests among these functions.
Added on 3 June 20193 June 2019.
2.2
Examples of proper separation include:
Added on 3 June 20193 June 2019.
2.3
The basis for determining and amending trading limits should be properly documented. Adequate audit trail reports should be maintained to show all changes to trading limits, the date and time of the modifications and the authorised person who approved the changes. In addition, sufficient checks and procedures should be in place to ensure that all limits and parameters set and modified by the credit control administrator are accurate and have been approved.
Added on 3 June 20193 June 2019.