Correction of Erroneous Trades (Mistyped Account Numbers)
The correction of trading errors associated with mistyped account numbers is the process of forming new transactions at trading system to allow the positions/open orders to be transferred to correct account by the member itself using the clearing workstation.
The workflow concerning the correction of erroneous trades executed faulty as a result of the mistyped account numbers for the orders placed on the trading system shall be conducted on clearing workplace by member/s’ user.
Without prejudice to the provisions of Article 33 of the Regulation, trades that occur due to erroneous order(s) may be canceled by the Exchange under the following rules.
a) Erroneous trade/trades shall be executed as a result of one of members’ erroneous order at least.
b) All requirements stated below shall be fulfilled in time of cancellation request since erroneous trade/trades may be subject to cancellation.
i. Application Period For Erroneous Trade Cancellation: Application for erroneous trade cancellation can be made within 30 minutes from the time the trade is executed. Deadline of application for trade cancellation is 18:30 for normal session trades.
ii. Required Information In Application For Erroneous Trade Cancellation: Order number subject to cancellation, contract and account number relating to erroneous trade/trades due to the erroneous order shall be submitted during the application period. Trade number, price and trade quantity of erroneous trades executed as a result of the related order are also required following the application.
iii. No Bust Range: Trades executed at the prices that are out of no bust range which are calculated by using reference price can be subject to cancellation. No bust ranges are stated below table on the related contract basis.
|Contract Class||Price Change Calculated from Reference Price|
|BIST30 Index and Single Stock Futures||+/- 5%|
|Currency Futures||+/- 3%|
|Other Futures Contracts||+/- 4%|
|All Call and Put Options||Maximum of +/-50% of the reference premium price or market maker maximum spread defined for the related contract|
iv. Minimum Loss Amount Generated As A Result of Trade/Trades Which Is/Are Subject To Cancellation: Minimum loss amount calculated by comparing reference price and prices of trade/trades subject to erroneous trade cancellation shall be TRY 25,000 for applications before 17:30 and TRY 100,000 for applications made at 17:30 and after during the normal session and TRY 25,000 for the applications made during the evening session.
v. Reference Price: Reference price, which is calculated with one or more of the following methods in order to determine the price that will reflect the market fairly, is used to clarify acceptable price levels for trade cancellation and losses due to related erroneous trade.;
i. Price/prices before the erroneous trade,
ii. Price/prices after the erroneous trade,
iii. Settlement price of the previous day,
iv. The first trade price in case erroneous trade/trades are executed with a pending order,
v. Theoretical price calculated according to the spot price of the related underlying asset or the prices of other contract months,
vi. Prices taken from market makers,
vii. If it is decided that above mentioned methods does not reflect the market failry, a different reference price may be determined by General Management
c) In cancellation of trades arising from intermonth strategy orders, prices of trades executed in the related contracts and strategy order price are considered together.
ç) Erroneous trade cancellation requests which fulfill all the requirements stated above can be submitted by either one or both sides of the trade via e-mail to firstname.lastname@example.org. Members can also reach VIOP via telephone numbered 0212 298 2427/3, however to be a valid cancellation request an has to be sent to email@example.com.
d) To be subject to cancellation, whether price tendency of the market is in line with the erroneous trade price or not may be taken into consideration separately.
e) In case trade cancellation is decided, cancellation decisions are announced pursuant to the relevant legislation. Before the cancellation, trading on the relevant contract may be suspended. Also, parties of the relevant trade may be informed about the cancellation.
f) Even if the above conditions are met with regard to the cancellation of the erroneous trade, Article 33 of the Regulation shall be applied if the above conditions are not met, while the right of the Exchange to cancel or not to fulfill the whole or part of the cancellation request is reserved.
g) Erroneous trade reports, even if the above mentioned conditions are not met, may be cancelled if the parties have approvals.
h) Application for a trade cancellation for erroneous trades in the Evening Session is evaluated in the following Normal Session. If the application is considered as acceptable, the related erroneous trade/trades are cancelled
ı) In the evaluation of trade cancellation request, requests may be evaluated together or seperately taking the relationship between orders and trades into account for the same investor.
For further information regarding Correction of Erroneous Trade and Trade Cancellation on VİOP please refer to the Derivatives market Procedure