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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Conduct of Business Module (COB) [VER34/01-20]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

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  • COB 9.6.5

    (1) An ATS OperatorG must be able to cancel, amend or correct any error trades.

    (2) An “Error TradeG ” is the execution of an order resulting from:

    (a) an erroneous order entry;
    (b) malfunctioning of the system of a member or of the ATS OperatorG ; or
    (c) a combination of (a) and (b).

    (3) For the purposes of (1), an ATS OperatorG must include a comprehensive error trade policy in its Operating RulesG , which sets out clearly the extent to which transactions can be cancelled by it at its sole discretion, at the request of a member or by mutual consent of members involved.

    (4) An ATS OperatorG must have adequate systems and controls to:

    (a) prevent or minimise error trades;
    (b) promptly identify and rectify error trades where they occur; and
    (c) identify whether error trades are related to disorderly market activity.
    [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]

    • COB 9.6.5 Guidance

      When assessing whether an ATS OperatorG has an appropriate and adequate error trade policy, the DFSAG will consider whether the rules and procedures included in its Operating RulesG :

      a. are adequate to minimise the impact of error trades where prevention of such trades is not possible;
      b. are sufficiently flexible in the design to address varying scenarios;
      c. establish a predictable and timely process for dealing with Error TradesG , including measures specifically designed to detect and identify Error TradeG messages to market users;
      d. promote transparency to market users with regard to any cancellation decisions involving material transactions resulting from the invocation of the Error TradeG policy;
      e. include adequate surveillance conducted in the markets to detect Error TradesG ;
      f. promote predictability, fairness and consistency of actions taken under the Error TradeG policy; and
      g. enable sharing of information with other markets when possible concerning the cancellation of trades.
      [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]