Aside from the change regarding offsetting positions, the
NFA has also set stricter limitations on how and when dealers
are allowed to change order prices after they have been
executed and reported to the customer.
Changes are usually attributed to Internet errors, incorrect
data feeds, and other technical errors. However, the
NFA found that most of the errors were directly related to
systems under the dealer’s control. The NFA decided dealers
should “bear the burden” of these price changes, and are
only allowed to make changes when it is to the benefit of
the customer, or when the dealer operates a “straight
through” service (one that is completely electronic and
offers direct access to a counterparty), and the straightthrough
dealer receives bad data from the counterparty. In
this case, the dealer has 15 minutes to notify the customer of
the change in case they decide to cancel or adjust the order.
This change takes effect on June 12.
NFA has also set stricter limitations on how and when dealers
are allowed to change order prices after they have been
executed and reported to the customer.
Changes are usually attributed to Internet errors, incorrect
data feeds, and other technical errors. However, the
NFA found that most of the errors were directly related to
systems under the dealer’s control. The NFA decided dealers
should “bear the burden” of these price changes, and are
only allowed to make changes when it is to the benefit of
the customer, or when the dealer operates a “straight
through” service (one that is completely electronic and
offers direct access to a counterparty), and the straightthrough
dealer receives bad data from the counterparty. In
this case, the dealer has 15 minutes to notify the customer of
the change in case they decide to cancel or adjust the order.
This change takes effect on June 12.
"Everything subject to destruction before even be created"
