This feature is available to preview in the UAT environment. It will be available in the production environment in the near future.
TT's Self-Match Prevention by ID (TT SMP) allows risk administrators to configure a unique ID value that helps match and prevent potential order crossing across clearing accounts at the company level. Users can configure Order Defaults and apply TT SMP to Users, Parent Accounts, Child/Sub-Accounts, and Order Profiles. This differs from the Avoid Orders That Cross (AOTC) functionality, which can only be applied at the account level.
Note All of the order cross prevention methods can only compare orders with identical instrument IDs. For example, it cannot match a September outright contract with a Sep-Dec calendar spread.
TT SMP applies to all supported markets on a pre-trade basis allowing TT to match potentially crossed orders before sending any orders to the exchange. This allows firms to avoid receiving rejections/non-compliance errors from the exchange.
Note At this time, TT SMP is not supported on accounts shared with introducing brokers. In addition, introducing brokers have no control over your TT SMP ID.
To begin using TT SMP, refer to the Enabling And Configuring Tt Self Match Prevention section in the Setup help.
TT SMP leverages two new settings:
When setting up TT SMP, you can select the following order cross prevention rules in the TT SMP Instruction field:
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 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.
Position Transfer Allow Split - This rule works the same as Position Transfer except that the quantity left over after a potential match is immediately sent to market even if the internal match has not yet completed.
Position Transfer Allow Split Best Bid/Offer - This rule works the same as Position Transfer except that the quantity left over after a potential match (that is at or better than the prevailing market price) is immediately sent to market even if the internal match has not yet completed.
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.
Once properly configured, TT SMP follows the sequence below to detect potential order crossing:
If both the TT SMP ID and the TT SMP Instruction tags are present, TT checks if there is an existing resting order with the same TT SMP ID that matches the new order.
Note Matching only applies to accounts within the same company. For example, if two separate companies use the same TT SMP ID string, those orders will not be matched against each other as the company IDs on the orders must also match.
If a match is found, TT uses the TT SMP Instruction from the new order and applies it to either the new or the resting order, as applicable.
If there is no matching order, TT attempts to submit the new order to the exchange, pending any additional pre-trade risk checks.
Note All of the order cross prevention methods can only compare orders with identical instrument IDs. For example, it cannot match a September outright contract with a Sep-Dec calendar spread.
If TT finds a configured TT SMP ID without a configured TT SMP Instruction value, the system does not check the order against other working orders. TT simply adds the TT SMP ID to the order.
If TT does not find a TT SMP ID value, regardless if a TT SMP Instruction value is present, TT will not check the order against other working orders, and will not add an TT SMP ID.
In each scenario, if the TT SMP ID is not present or not matched, TT submits the new order to the exchange, pending any additional pre-trade risk checks.
In addition to TT Self-Match Prevention (TT SMP) functionality, some users may also enable the Avoid Orders that Cross (AOTC) functionality.
When you configure an account to support both TT Self-Match Prevention (TT SMP) and the Avoid Orders that Cross (AOTC) functionality, TT always follows the instruction set by the Avoid Orders that Cross (AOTC) functionality.
Note When AOTC is configured on a child account, TT follows the AOTC instruction for orders submitted using either the parent account or the child account.
The TT SMP ID and TT SMP Instruction can be overridden for FIX. Other API based orders (e.g., TT .NET SDK, TT CORE SDK) will use the values configured in Setup.