ASX is preparing to implement enhanced pre-trade risk controls early next year that will be mandatory for all customers, including maximum order quantity and net position limits. The risk controls are part of the new trading platform for the Australian exchange's futures markets that is scheduled to go live in February. In November, ASX released operating rules for the new platform that include details on the enhanced risk controls. For example, the rules specify that maximum order quantity controls, commonly known as fat-finger limits, will be set per account, product and trading participant. The net position controls will limit the net position and net short position and also will be set per account, product and trading participant. The new platform also will support voluntary "trading protection limits" which are based on the maximum price deviation from a reference price during open trading.
