ASX Updates Customer Report on Trade Outrage on 16 November

​Australian financial market exchanges ASX Group recently released an update on its trade outrage on 16 November, stating that it will reintroduce some tailor made combinations (TMC) functionality on 21 December and provide an update on other TMC functionality in January 2021.

On 16 November 2020, a technical incident occurred relating to a software defect in the new ASX Trade system. This resulted in ASX deciding to close the equity market. The market was closed from 10:24:05 on 16 November 2020.

Nasdaq and ASX identified the root cause to be a software issue that caused incorrect functionality in the TMC order book. TMCs are used primarily by retail and institutional traders of equity derivatives, and enable the trading of multiple options in one transaction. This reduces execution risk for customers. ASX disabled this functionality and a detailed root cause analysis of the software issue was undertaken by Nasdaq.

Adena Friedman, Nasdaq President and Chief Executive Officer, said: “We take our role as a provider of mission-critical technology seriously and apologise to ASX, its customers and all those impacted. Nasdaq is committing its full attention and global technology resources to this issue.”

Dominic Stevens, ASX Managing Director and Chief Executive Officer, said: “ASX appreciates the patience of our customers during this time. We are working very closely with Nasdaq to return this order type to the market as soon as possible and are confident that we are on the right path.”

ASX have completed a full analysis of the incorrect functionality in the TMC order book and the resolution plan, and on advice from Nasdaq. It will reintroduce some TMC functionality on 21 December, providing sufficient time for Nasdaq and ASX to complete testing and market readiness activities, which are already underway.