Order Cross Prevention

Order Cross Prevention

Order Cross Prevention Overview

Order Cross Prevention on the TT platform includes multiple methods for preventing traders at a firm from inadvertently or purposely trading with themselves or others trading on the same account. The Setup application on TT provides risk administrators with the ability to enable Avoid Orders That Cross (AOTC) functionality and select different AOTC rules per account to prevent order crossing at the exchange.

Order cross prevention rules

When creating an account, you can select the following order cross prevention rules per account to prevent order crossing at the exchange:

  • Not Applied — No order cross prevention rule is applied to the account.
  • Reject New — Reject a new order that could potentially fill resting orders in the same account or account tree. Applies to only Limit orders and native Iceberg orders.
  • Cancel Resting (wait for ACK) — Send a cancel request to the exchange for the resting order. When the exchange acknowledges the request and cancels the order, submit the new order. Applies to only Limit orders and native Iceberg orders.
  • Position Transfer — When a match is detected, the resting order is canceled or the working order quantity is reduced by the size of the aggressive order. A fill is created by TT and sent to each account. If the aggressive order was larger than the resting order, then the remainder of it will be sent to market. For a description of how Position Transfer works, refer to Position Transfer.

  • Position Transfer (if resting order is best bid/offer) — This rule works the same as Position Transfer except that the internal matching occurs only if an order has the potential to fill a resting order at the current best bid/ask price.

    Note: When using this rule, the resting order may get matched and filled at the exchange while the aggressive order is in flight.

At the account-level, you can configure the default behavior for orders that cross within an account and between accounts within your company.

Order Cross Prevention is set for the parent account and inherited by any sub-accounts (child accounts) associated with the parent account. When a parent account is shared with another company, the sharing company can determine which Order Cross Prevention rule is set for the shared-with company's child accounts.

Position Transfer rules

The Position Transfer rules prevent self-matching to avoid fines and eliminate rejected orders due to potential crosses. For more details, refer to Position Transfer.