Document ID: chunk:federal_register_of_legislation:F2024C01109:front:0:p37
Version: federal_register_of_legislation:F2024C01109
Segment Type: other
Provision Reference: 
Character Range: 96261–99128

leg of a Strategy Trade to the same account.

Part 3.3 Pre-negotiated business orders

3.3.1 Pre-negotiated business
(1) Where a Market Participant receives an instruction from a Client which can be executed as pre-negotiated business on a Market, the Market Participant may:
(a)        withhold transmission of the instructions in order to solicit Orders from Clients and other Market Participants of that Market;
(b)       disclose details of Clients' instructions; and
(c)        aggregate Orders received from Clients in satisfaction or part satisfaction of the originating Client Order.
(2) For the purposes of subrule (1), pre-negotiated business on a Market refers to Orders involving Contracts which have been:
(a)        permitted to be pre-negotiated in the operating rules of the relevant Market; and
(b)       are in numbers of Contracts greater than or equal to the number designated by the Operator of the relevant Market.

3.3.1A Entry of orders
(1) If counterparties have been solicited by a Market Participant pursuant to paragraph 3.3.1(1)(a), the Market Participant must:
(a)        make an enquiry through the message facility of the Trading Platform of the relevant Market, for a market in that contract month or strategy;
(b)       wait until the period of time prescribed in the operating rules or in the procedures of the relevant Market, has elapsed since the entry of the enquiry or, if no such time is prescribed, 30 seconds; and
(c)        then immediately enter the Order on the Trading Platform of the relevant Market for execution.
(2) An enquiry under paragraph (1)(a) must:
(a)        specify all information that is material to the pricing and trading of the orders to be executed;
(b)       where applicable, include a description of the contract, class and series of the option(s) that will form the strategy;
(c)        where applicable, include a description of the intended trade using common market terminology; and
(d)       if the trade involves a ratio of futures or options and/or a delta hedge, information that explicitly specifies the ratio, delta and the price basis for the hedge in the underlying commodity, as applicable.
(3) Where a Participant of a Market (first Market Participant) holds opposing Orders at a specific price, and a bid or offer is entered in the relevant Market by another Participant of that Market (other Market Participant) following the message sent under paragraph (1)(a) that is at the same or better price than the opposing Orders held by the first Market Participant, the first Market Participant must give priority to trading against the bid or offer entered by the other Market Participant.

3.3.2 Client authorisation
Before entering a pre-negotiated business Order on behalf of a Client under Rule 3.3.1, a Market Participant must be authorised in writing by the Client to do so either