Borsa İstanbul Derivatives Market (VIOP) announced new “Erroneous Trade Policy” in order to provide more transparent trading for derivatives contracts.

Currently, the correction of erroneous trades resulting from orders with mistyped account number shall be conducted by the member itself using the trading workstation. In addition to this, new operation principles regarding cancellation of trade/trades executed as a result of erroneous order announced on March 19th, 2015.

Borsa Istanbul VIOP targets more transparent trading for derivative investors.

With expansion of electronic trading, trades executed as a result of erroneous order have become a real and substantial risk for markets and investors. Thus, Borsa İstanbul VIOP specified the procedures on cancellation of trade/trades executed as a result of erroneous order for the purpose of protecting investors and ensuring transparent trading platform.

Requirements for cancellation of erroneous trades are clearly defined to promote market integrity.

All requirements are specified considering market participants’ feedback to survey in order to reduce the risk of a catastrophic loss due to erroneous trades.

Some of the main requirements specified by the Exchange are stated below:

• Erroneous Review Requests: Pursuant to published Announcement, members shall submit erroneous review request including essential information within 15 minutes from the execution time.
• No Bust Range: Trades executed at the prices that are out of no bust range can be subject to cancellation
• Minimum loss amount: Minimum loss amount generated from erroneous trades shall be TRY 1,000.
• Reference price: Reference price is the price used for determining no bust range and minimum loss amount.