EFFECTIVE: DEC 12 2016
Individual market participant, i.e. you as our partner and more importantly the dissemination of said information to your customers.
Trading activity is being monitored and any suspicious activity will be investigated by the relevant markets and authorities.
In order to assist clients in managing futures positions in an easy and compliant manner, we are changing functionality to ensure positions are automatically netted at the end of each trading day.
Currently, if a trader holds both long and short positions in the same futures contract, in the same account, and one of the positions has a related stop loss or take profit order, these positions will not net together at the end of the trading day. It is possible to be long and short in the same futures contract, which is non-compliant. Please refer to the recent communication regarding Market Conduct Rules for more information.
From 12 December, 2016, positions will be automatically netted using FIFO, regardless of related orders.
For example if a trader is:
- Long +3 Light Sweet Crude (WTI) + stop loss
- Short -2 Light Sweet Crude (WTI)
These will be netted to:
- Long +1 Light Sweet Crude + stop loss
Note that the stop loss will still be for 3 contracts and will not be adjusted.