As a matter of principle, TOCOM currently doesn’t allow cancellation of executed trades except in certain specific cases (e.g: the failure of a Member’s system) in order to maintain an orderly market.
The Exchange said that with the advancements and expansion of electronic trading, it is aware that there is now an increased risk of a contract being executed at an abnormal price following a possible operational or system failure of a market participant.
If such a risk should materialize, it may significantly disrupt the market and thus damage the credibility of TOCOM.
For this reason, TOCOM said it is adopting a policy to be able to cancel executed trades resulting from erroneous orders placed by trade member, etc. (i.e: Broker, Trade and Remote Trade Members) when the Exchange deems that such trades could significantly disrupt the market and damage the credibility of the TOCOM market.
Concretely, in case of a trade executed at a contract price that significantly diverges from the last execution price* as a result of an erroneous order, a Trade Member, etc. can notify the Exchange to request its cancellation within five minutes after said trade has been executed.
