(1) An ATS Operator must be able to cancel, amend or correct any error trades.
(2) An “Error Trade” is the execution of an order resulting from:
(a) an erroneous order entry;
(b) malfunctioning of the system of a member or of the ATS Operator; or
(c) a combination of (a) and (b).
(3) For the purposes of (1), an ATS Operator must include a comprehensive error trade policy in its Operating Rules, which sets out clearly the extent to which transactions can be cancelled by it at its sole discretion, at the request of a member or by mutual consent of members involved.
(4) An ATS Operator must have adequate systems and controls to:
(a) prevent or minimise error trades;
(b) promptly identify and rectify error trades where they occur; and
(c) identify whether error trades are related to disorderly market activity.