ASX consulted on the introduction of Anomalous Order Thresholds (AOTs) for ASX 24 products, aiming to enhance market integrity through order-level price and volatility protection mechanisms. FIA strongly supports ASX’s proposal to implement AOTs on interest rate futures, noting that this aligns with FIA’s Best Practices for Automated Trading Risk Controls and reflects established safeguards in global markets.
FIA acknowledged the greater complexity of applying AOTs to commodity markets, especially for seasonal contracts like power/electricity. Nonetheless, FIA encouraged ASX to continue engaging with market participants to explore fit-for-purpose solutions, such as dynamic thresholds or volatility-adjusted collars.
FIA recommended ASX consider how global venues implement similar controls in energy and agricultural markets, noting that broader AOT adoption would align ASX 24 with international practices and further support robust risk management across asset classes.
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