National DTR Accreditation Vocabulary Flashcards

Vocabulary flashcards covering key terms, regulatory frameworks, order types, and trading rules from the National DTR Accreditation manual.

Designated Trading Representative (DTR)

A representative of a trading participant who is authorised by the participant to submit trading messages on its behalf into financial market trading platforms.

Markets Disciplinary Panel (MDP)

A peer review body comprised of practising or former practitioners in the securities and derivatives industries that hears and determines alleged Market Integrity Rule breaches.

Automated Order Processing (AOP)

The process by which orders are registered in a market participant's trading system and submitted as trading messages into the trading platform without being keyed or re-keyed by a DTR.

Smart Order Router (SOR)

An automated order processing system routinely used by participants to direct orders to the best trading venue as prescribed by their best execution policy.

Information Barriers

Divisions or barriers established within a firm to prevent the flow of price-sensitive information that could cause a conflict of interest.

Giving Preference

The obligation requiring a market participant, upon receiving an order from a client, to not enter into a transaction on its own account for the same product on the same terms until the client's order is fully executed.

Manipulative Trading

The prohibited practice under Rule 5.7.1 of placing or executing an order which could result in creating a false or misleading appearance of active trading in any product, or of the market for or price of the product.

Covered Short Selling

A sale where the seller does not own the securities to be sold, but has an arrangement in place to borrow them before the short sale order is entered.

Naked Short Selling

A prohibited short sale where the seller has not arranged to borrow stock before entering the order.

Reportable Short Position

The net short position calculated as the number of securities a person has sold less the number of securities the person holds in that class.

Best Outcome for Retail Clients

Obtaining the best total consideration, defined as the purchase price plus transaction costs for a buy order, or the sale price minus transaction costs for a sell order.

Price Improvement

Execution of a transaction at a valid price step above the best available bid and below the best available offer, or at the midpoint of the best available bid and offer.

Crossing System

An automated service provided by a participant which matches client orders against other client orders, or against orders of the participant acting as principal, away from the market order book.

Extreme Trade Range (ETR)

An ASIC-determined price variance range from a reference price beyond which transactions trigger an immediate two-minute trading pause and mandatory trade cancellation.

Anomalous Order Threshold (AOT)

A dynamic price threshold updated every minute at the extreme of the No Cancellation Range, equal to or above which aggressive orders are rejected by the ASX order book.

Iceberg Order

An order type where only a specified portion of at least $500$ units is disclosed to the market while the remainder remains hidden until replenished.

Undisclosed Order

An order placed in the central order book where the entire quantity is hidden from the market, requiring a minimum order value of $\text{AUD } 500,000$.

Centre Point Order

A private order matched at the midpoint of the best bid and ask in the ASX central limit order book during continuous trading.

ETF Special Trade

A transaction where a trading participant buys or sells a portfolio of underlying securities to or from an ETF issuer as part of subscribing for or redeeming ETF securities.

Put-Through Special Crossing

A block special crossing used to identify the transfer of securities with a minimum value of $\text{AUD } 1,000,000$ from one nominee of a funds manager to another nominee of the same manager.

Facilitated Specified Size Block Special Crossing (FSSBSC)

A block crossing where a participant acts as principal on one side and agent for a single client on the other, meeting specific minimum threshold considerations such as $\text{AUD } 15\text{ million}$ for Category A securities.

Tailor-Made Combination (TMC)

A custom strategy specified by a participant comprising up to four component legs with a maximum ratio of $4:1$, entered and transacted in the central order book at a net price.

AQUA Quote Display Board

An ASX facility used for advertising indicative prices for AQUA products, such as managed fund products, ETF securities, and structured products not listed on the live open market.

ASX BookBuild

An infrastructure tool that allows issuers and lead managers to conduct a bookbuilding process accessible to eligible investors and trading participants.