General
1.1 Purpose
These Rules govern trading mechanisms, order handling and matching, trading states, price controls, trade confirmation and cancellation, market suspension and other operational matters for Financial Products on a IDSX Market. They seek to establish fair, orderly and transparent trading; apply consistent access rules; support continuous, efficient and auditable price discovery; maintain system stability; reduce harm from erroneous orders and unusual trading; support ongoing liquidity from Sponsor Market Makers; and protect investors and the market.
1.2 Application
These Rules apply to each IDSX Market and Financial Product admitted to trading, Broker Participants, Introducing Participants, Sponsor Market Makers, clients accessing a IDSX Market through a Participant, and any other market person designated by IDSX.
1.3 Participant responsibility
A Market Participant is responsible for every order submitted to IDSX through its Participant ID, Trading Account, API Connection, Order Gateway or Direct Market Access. It is not relieved of responsibility because an order was generated by a client, algorithm, third-party system or authorised user.
IDSX Trading System
2.1 Trading System
The IDSX Trading System is an electronic system operated or designated by IDSX to receive, validate, manage, prioritise and match orders, generate executions, publish trading data and apply market risk controls.
2.2 Electronic market
IDSX generally operates an electronic order-book market. Orders enter the Trading System through a IDSX-approved Trading Interface, API, Participant Gateway or other approved technical interface.
2.3 Central Order Book
Unless a product or trading method provides otherwise, IDSX may use a Central Limit Order Book to centrally match orders.
2.4 Trading records
Order IDs, timestamps, Execution IDs, Trade Records and System Logs generated by the Trading System are official IDSX electronic trading records.
Trading eligibility
3.1 Eligible Products
A Financial Product may trade only after IDSX Admission and, where applicable, Quotation Approval or Trading Approval.
3.2 Eligible Participants
Only a Market Participant with the relevant Trading Authority may submit orders directly to the Trading System.
3.3 Client access
Investors ordinarily access a IDSX Market through an eligible Market Participant. The Participant must determine that the client meets Applicable Law, Investor Eligibility, Product Eligibility, Geographic Restrictions and other applicable requirements.
Trading sessions
4.1 Trading Schedule
IDSX may set a different Trading Schedule for each Financial Product.
4.2 Continuous Trading
IDSX may provide Continuous Trading for eligible Financial Products.
4.3 24/7 Trading
IDSX may designate some or all Financial Products for continuous trading 24 hours a day, 7 days a week.
4.4 No guarantee of uninterrupted availability
24/7 Trading does not guarantee that a product will be tradable at every moment. IDSX may suspend trading for System Maintenance, a Trading Halt, Market Suspension, Corporate Action, Settlement Issue, Emergency Event or Applicable Law.
4.5 Publication
Trading Hours, Maintenance Windows, Market Making Hours and Special Sessions for each product must be published through IDSX's official channels.
Trading phases
IDSX may establish Pre-Open, Opening Auction, Continuous Trading, Trading Halt, Cancel Only, Close Only, Closing Auction, Post-Trading, Maintenance or Suspended phases for a Market or Financial Product.
5.1 Pre-Open
During Pre-Open, IDSX may accept, amend and cancel orders but ordinarily does not execute them immediately.
5.2 Opening Auction
IDSX may use an Opening Auction to establish an opening reference price.
5.3 Continuous Trading
During Continuous Trading, orders are continuously matched under Price-Time Priority or another applicable matching mechanism.
5.4 Cancel Only
In Cancel Only, no new order that increases market risk may be submitted. Existing orders may be cancelled; IDSX may permit amendments that reduce risk.
5.5 Close Only
IDSX may use Close Only in special circumstances. Only activity that reduces or closes existing exposure is permitted.
5.6 Suspended
A Financial Product in Suspended status is not available for ordinary trading.
Order types
IDSX may support one or more of the following Order Types.
6.1 Market Order
A Market Order has no specified price and executes at the best prices available in the Order Book. It may execute partially or across several price levels, incur Slippage, or remain partly unfilled when liquidity is insufficient.
6.2 Limit Order
A Limit Order specifies the highest price payable for a purchase or the lowest price accepted for a sale. A Buy Limit Order must not execute above its Limit Price and a Sell Limit Order must not execute below it.
6.3 Stop Order
If supported, a Stop Order becomes the relevant order when its specified trigger condition is met.
6.4 Stop Limit Order
A Stop Limit Order becomes a Limit Order when triggered.
6.5 Market-to-Limit
IDSX may support a Market-to-Limit Order. Any unexecuted balance may convert to a Limit Order under the applicable Rules.
6.6 Iceberg Order
If supported, an Iceberg Order may display only part of its total quantity. Its hidden quantity remains subject to the applicable priority rules.
6.7 Reserve Order
IDSX may allow a Reserve Quantity to be set for an order.
6.8 Pegged Order
IDSX may support a Pegged Order whose price automatically adjusts by reference to the Best Bid, Best Ask, mid-price or Reference Price.
6.9 Post Only Order
A Post Only Order is intended to add liquidity. If it would immediately execute against an existing order, the system may cancel or adjust it under predetermined rules.
6.10 Reduce Only Order
IDSX may support Reduce Only Orders where the product structure makes them applicable.
Time in Force
IDSX may support the following Time in Force instructions.
7.1 Good for Day
The order remains valid until the end of the applicable Trading Day.
7.2 Good Till Cancelled
The order remains valid until execution, cancellation by a client or Participant, cancellation by the system under the Rules, or expiry of a maximum period set by IDSX.
7.3 Immediate or Cancel
Any quantity that can execute immediately executes; the balance is cancelled.
7.4 Fill or Kill
The order must execute in full immediately or be cancelled in full.
7.5 Good Till Time
The order remains valid until a specified time.
7.6 Good Till Date
The order remains valid until a specified date.
Order requirements
An order must contain the fields required by IDSX, including the Financial Product, buy or sell side, quantity, price where applicable, Order Type, Time in Force, Participant ID, account or client identifier, timestamp and any other specified field.
Order validation
Before or after entering the Trading System, an order may be checked against Participant Authority, Product Eligibility, Trading Status, price and quantity validation, size and position limits, message-rate limits, risk controls and other system validations.
9.1 Invalid Orders
An order that fails validation may be rejected, cancelled, restricted or flagged as unusual and will not enter ordinary matching.
Price-Time Priority
10.1 General principle
Unless IDSX specifies otherwise for a Market or Order Type, orders are ranked by Price Priority and then Time Priority.
10.2 Buy Orders
A higher-priced Buy Order ranks ahead of a lower-priced Buy Order.
10.3 Sell Orders
A lower-priced Sell Order ranks ahead of a higher-priced Sell Order.
10.4 Same price
At the same price, an order entered into the Order Book earlier ordinarily has priority.
Order matching
11.1 Matching
The Trading System may automatically match a Buy Order and Sell Order when their prices are mutually executable.
11.2 Trade price
The execution price is generally determined by the resting order, incoming order and applicable Matching Algorithm.
11.3 Partial execution
An order may execute in part if it cannot be filled in full.
11.4 Remaining quantity
The Order Type, Time in Force and Trading Phase determine whether an unexecuted balance remains in the Order Book or is cancelled.
Self-Trade
12.1 Prevention
IDSX may provide Self-Trade Prevention functionality.
12.2 Participant controls
Participants must take reasonable steps to reduce self-executions that have no economic substance.
12.3 Market manipulation
A Participant or Client must not use a Self-Trade to create false volume or activity, influence prices or obtain an improper trading incentive.
Order modification
13.1 Permitted changes
A Participant may amend fields that IDSX permits while an order is not fully executed.
13.2 Loss of priority
Changing price, increasing quantity or making another material change to an order may cause it to lose its existing Time Priority.
13.3 Quantity reduction
IDSX may allow an order to retain its Time Priority when only its quantity is reduced.
Order cancellation
14.1 Participant cancellation
A Participant may cancel its unexecuted order in accordance with the IDSX Rules.
14.2 System cancellation
IDSX may cancel orders because of a Trading Halt, Market Suspension, Technical Failure, Corporate Action, expiry, Participant Suspension, risk control, Clearly Erroneous Order or Emergency Event.
14.3 Cancellation not guaranteed
A cancellation request does not guarantee that the original order will not execute before the cancellation takes effect.
Trade finality
15.1 General principle
An order executed by the Trading System ordinarily forms a valid Transaction.
15.2 Binding trade
An execution binds the relevant Participants except for a Clearly Erroneous Trade, System Error, Market Integrity Event or other special circumstance recognised by IDSX under these Rules.
Trade confirmation
An execution may generate an Execution ID, Financial Product, price, quantity, execution time, buying and selling Participants, settlement information and other required records.
Trade reporting
IDSX must record and publish trading information appropriate to the market structure. Published data may include Last Traded Price, trade size and time, daily volume, high, low, open, close and other market data.
Market data
18.1 Market Data
IDSX may publish Best Bid and Best Ask, Order Book Depth, last trade, volume, price statistics, Market Status and Reference Prices.
18.2 Market Data Levels
IDSX may offer Level 1, Level 2, Full Order Book, historical and reference data.
18.3 Accuracy
IDSX must take reasonable steps to maintain accurate market data. Temporary delay or error may nevertheless arise from technical latency, network issues, third-party data or system events.
Tick Size
19.1 Tick Size
IDSX specifies the minimum quotation increment for a Financial Product.
19.2 Schedule
Different price ranges or products may have different Tick Sizes.
19.3 Invalid increment
The system may reject an order that does not comply with the Tick Size.
Minimum and maximum order size
IDSX may set a Minimum Quantity, Minimum Notional Value or Minimum Trade Size for a Financial Product. It may also set a Maximum Order Size having regard to liquidity, market capitalisation, volatility or risk.
Price controls
22.1 Purpose
IDSX may apply Price Controls to reduce the entry of obviously erroneous or unusual orders.
22.2 Measures
Controls may include a Price Collar, Maximum Price Deviation, Dynamic or Static Price Band, Reference Price Control and Fat Finger Protection.
Reference and price bands
IDSX may use a Previous Closing Price, Opening Price, Last Traded Price, Auction Price, VWAP, external market price, underlying asset value or another reasonable price as a Reference Price. A Static Price Band may be set around a Reference Price; an order outside it may be rejected, placed in a special state or trigger Volatility Control. A Dynamic Price Band may adjust with recent execution prices or market conditions.
Volatility Control and Circuit Breakers
26.1 Trigger
IDSX may trigger Volatility Control when a Financial Product moves unusually over a short period.
26.2 Measures
Measures may include a Temporary Pause, Volatility Auction, wider Price Band, reduced order functionality or special Trading Status. IDSX may set a Circuit Breaker for an Individual Security, Market Segment or the Entire Market, having regard to Price Movement, index movement, a liquidity collapse or a systemic market event.
Trading Halt
28.1 Authority
IDSX may halt trading in a Financial Product.
28.2 Grounds
Grounds may include pending Material Information, an issuer request, extreme volatility, suspected manipulation, a technical or settlement issue, Corporate Action, regulatory direction, an underlying-asset issue or another matter affecting fair, orderly and transparent trading.
28.3 Orders during halt
IDSX may determine whether existing orders remain, may be cancelled, are all cancelled, new orders are prohibited or the product enters Cancel Only.
Resumption and suspension
Before resumption, IDSX may publish a Market Notice, enter Pre-Open, hold a Re-opening Auction, reset the Reference Price or adjust a Price Band. Suspension is a potentially longer cessation of trading and may arise from Listing Rules non-compliance, material disclosure failure, Sponsor Market Maker failure, legal or regulatory issues, Settlement Failure or another material matter.
Sponsor Market Maker orders and price discovery
31.1 Identification
IDSX may require orders used to meet formal market-making duties to carry a special identifier.
31.2 Genuine market making
Quotes must be genuine and executable and comply with Minimum Quote Size, Maximum Spread, Quote Presence and Sponsor Market Maker Rules.
31.3 Same priority
Unless IDSX expressly specifies a special market mechanism, a Sponsor Market Maker receives no price or time priority over ordinary orders because of its status.
31.4 No guaranteed execution
A Sponsor Market Maker has no guaranteed execution. Its role is to provide liquidity, not set prices, prevent normal price discovery, maintain a target price, coordinate manipulation with an Issuer or create false volume.
Opening, initial listing and closing prices
IDSX may determine an Opening Price using an Opening Auction, Previous Reference Price, first eligible trade, Sponsor Market Maker Quotes, external Reference Price or another approved method. An Initial Reference Price may be based on an Issuer Offering Price, Sponsor assessment, bookbuilding, pre-market indications, independent valuation or another appropriate method; IDSX determines the final opening mechanism. An Official Closing Price may use the Closing Auction Price, Last Traded Price, VWAP, a time-weighted calculation or another appropriate method.
24/7 markets and daily reference cycle
For a 24/7 product, IDSX may set a Daily Reference Time for calculating Daily Open, High, Low, Close, Volume and percentage change. It is for statistics and system processing and does not require trading to stop.
Corporate Actions
IDSX may adjust orders or trading parameters for a Stock Split, Reverse Split, Dividend, Rights Issue, Merger, Spin-off, Token Redenomination or other Corporate Action.
37.1 Open Orders
IDSX may adjust order prices or quantities automatically, cancel all unexecuted orders or take another reasonable measure.
Tokenised Securities
38.1 Trading treatment
A Tokenised Security remains subject to Trading Rules according to its legal and economic nature.
38.2 Blockchain record
A Blockchain or Distributed Ledger Record does not automatically replace the official order and execution records in the IDSX Trading System.
38.3 On-chain transfer
Any post-Transaction delivery or registration on a Blockchain must comply with the Clearing and Settlement Rules.
Trading currency and settlement asset
IDSX may permit a Financial Product to be quoted or settled in Fiat Currency, a Stablecoin or another Approved Settlement Asset. Each product must specify its Quote Currency, Settlement Asset and Settlement Method. Use of a Stablecoin is not a guarantee by IDSX of its price stability, redemption, issuer credit or legal status.
Off-Book Transactions
IDSX may permit specified transactions outside the Central Order Book, including Block Trades, Negotiated Transactions, Cross Trades, Corporate Transactions or other approved trades. Each Off-Book Transaction must be reported as IDSX requires. Block Trades may have separate minimum-size, price, reporting-deadline and publication rules.
Cross and pre-arranged trades
A Participant representing both sides may conduct a Cross Trade only as permitted by Applicable Law and the IDSX Rules, with proper client authority, fair management of conflicts, a reasonable execution price and appropriate records. A Pre-arranged Trade must not evade the Central Order Book, create a false market or volume, or manipulate prices.
Short selling
IDSX may permit, restrict or prohibit Short Selling in a Financial Product. If permitted, it may require order identifiers, Borrow Arrangements, Locate Requirements, position reporting or price restrictions. Newly listed or illiquid securities may face stricter limits. Naked Short Selling is prohibited unless expressly permitted by Applicable Law and the IDSX Rules; a Short Sale must have a reasonable prospect of delivery.
Issuer trading, buybacks and market conduct
An Issuer and its associates trading in its securities must comply with Applicable Law and the Rules on insider trading, disclosure, buybacks and market conduct. A market buyback must meet IDSX requirements for price, volume, timing, disclosure and Participant execution. No person may trade on prohibited Inside Information or engage in false or misleading trading, artificial price movement, Wash Trading, Spoofing, Layering, Marking the Close, Momentum Ignition or other manipulation.
Clearly erroneous orders and trades
IDSX may block an obviously unusual order, having regard to a material price deviation, unusual size, input error, system error or other objective anomaly. It may review a suspected Clearly Erroneous Trade on request or on its own initiative. Factors include deviation from market price, order size, liquidity, system failure, an obvious Fat Finger Error, effects on other trades and market integrity. IDSX may maintain, cancel or adjust the trade or take another reasonable measure. A loss by itself is not grounds for cancellation. A completed Transaction may be busted only in special circumstances permitted by the Rules.
System, Participant and operational controls
If a System Error causes incorrect matching, price, duplicate executions or market data, IDSX may take reasonable corrective action. A Participant with a system failure must control risk, use its Kill Switch where needed, cancel abnormal orders, notify IDSX and restore service. IDSX may provide or require a Kill Switch to stop new orders, cancel open orders, halt an algorithm or suspend an account or connection. IDSX may set Orders per Second, Messages per Second, Cancel Ratio and API limits. A Participant must not send excessive messages without a reasonable trading purpose or impair the system, market data, other Participants or fair operation.
Direct Market Access and Algorithmic Trading
IDSX may allow an approved Participant to provide Direct Market Access (DMA). A DMA Client's orders are treated as submitted through that Participant, which remains responsible for supervision and risk controls. Controls must include credit, order-size, price, position and message limits, a Kill Switch and real-time monitoring. Algorithmic Trading is permitted subject to testing, version control, price, quantity, message-rate and position limits, a Kill Switch and Participant responsibility for every generated order.
Accounts, identification and transparency
Participants must distinguish Client, Proprietary, Market Making, Employee and other required accounts. IDSX may require Client, Principal, Market Maker, Algorithmic, Short Sale, DMA or other regulatory flags on orders. IDSX may operate an Anonymous Order Book so pre-trade data does not show a counterparty's identity; anonymity does not restrict IDSX access to Participant, account, order-origin or other supervisory information. IDSX may publish pre-trade information such as Best Bid, Best Ask, Order Book Depth and indicative auction prices, and post-trade price, quantity, time, cumulative volume and other data. It may delay publication for Block Trades, large transactions or illiquid securities where permitted.
Surveillance and restrictions
IDSX may monitor orders, quotes, trades, cancellations, Participant and client behaviour and Sponsor Market Maker activity in real time or after the event. For suspicious trading, IDSX may request explanations or client records, restrict an account, cancel open orders, suspend a Participant or product, or refer the matter to a regulator. IDSX may impose trading restrictions, Position Limits or concentration controls, including reporting, limits on new trades or enhanced supervision where an account, Participant or related group holds a concentrated position.
Emergency, cybersecurity and maintenance
For a market-wide emergency IDSX may suspend the market, restrict Order Types, cancel orders, adjust Price Bands, Market Making Requirements or Trading Hours, or take another reasonable measure. During a material Cybersecurity Event it may disconnect a Participant, suspend an API or session, enter Cancel Only, suspend a Market or activate disaster recovery. IDSX may switch to a Disaster Recovery Environment; Participants must assist with connection migration, session re-establishment and order and trade reconciliation. IDSX may schedule or conduct emergency maintenance and should give reasonable advance notice of scheduled maintenance.
Settlement
Post-trade duties are governed further by the IDSX Clearing and Settlement Rules. Trade Execution and Settlement are separate stages; an executed trade is not automatically invalid because settlement has not completed. A Participant expecting a Settlement Failure must promptly notify IDSX or the relevant Settlement Facility. Each product must specify its Trade Date Convention and Settlement Cycle. IDSX may use T+0, near-real-time or atomic settlement for eligible digital delivery, Delivery versus Payment where supported, and on-chain Token Transfer under the Settlement Rules. Failed-trade measures may include retry, buy-in, cash settlement, penalty or suspension.
Fees, violations and relief
Trading may incur Trading, Transaction, Market Data, Connectivity and Settlement Fees and other published fees. Sponsor Market Makers may receive rebates tied to genuine liquidity contribution; an incentive must not depend on artificially maintaining a security price. Violations include unauthorised trading, bypassing controls, manipulation, false orders, algorithm abuse, breach of a restriction, misuse of market data or failure to provide records. IDSX may warn, cancel orders, restrict accounts or Participants, suspend a product, review trades or refer the matter for enforcement. IDSX may grant a waiver, conditional waiver or temporary relief only as permitted by Applicable Law; it must not harm integrity, fair competition, investors or orderly and transparent markets.
Product Trading Schedule
IDSX may publish a schedule for each product specifying its name or symbol, Trading Model, Trading Hours, Quote Currency, Settlement Asset, Tick Size, minimum and maximum order size, Price Band, supported Order Types and Time in Force, Settlement Cycle, Sponsor Market Maker and special conditions.
24/7 Trading Schedule
A 24/7 schedule may specify a Daily Reference Time, Core Liquidity Hours, Reduced Liquidity Hours, Scheduled Maintenance and the Daily Statistics Cut-off.
Core trading principles
- (1) All lawful orders are handled under published Rules.
- (2) Orders on the same terms are generally handled under Price-Time Priority.
- (3) No Participant receives secret priority because of size, status or commercial relationship.
- (4) Sponsor Market Maker orders generally compete at the same matching priority as other orders.
- (5) Market making supplies genuine liquidity; it does not control a security's price.
- (6) IDSX may use Price Bands, Circuit Breakers and Trading Halts to maintain stability.
- (7) 24/7 Trading remains subject to necessary maintenance, suspensions and emergency measures.
- (8) An executed order is binding except in expressly specified special circumstances.
- (9) Orders and executions must have complete, accurate and auditable electronic records.
- (10) Prices must form from genuine buying and selling interest, not false orders or manipulation.
— END OF PART 3 — IDSX RULEBOOK PART 3 — TRADING RULES