The requirement, in our words
A Trading Participant needs suitable controls and arrangements around its Trading System. The rule lists four groups: automated filters, filter parameters and a record of changes to them; security arrangements that monitor for and prevent unauthorised access; controls that immediately suspend, limit or prohibit trading for a named Authorised Person or client, one or more Trading Algorithms, one or more financial products, one or more Markets, or one or more Trading Systems; and controls that immediately stop and cancel a series of related Trading Messages or Orders in a Market or in a Crossing System the participant operates. The participant must have direct control over the filter controls at all times.
What the rule is trying to do
The rule turns the old automated order processing checklist into a set of switchable controls with a defined blast radius. The five suspension dimensions and the series-level stop and cancel are the core of the duty. Direct control means the participant, not a vendor or a market operator, can operate the filter.
What good practice looks like
Prove each control dimension independently: one person, one algorithm, one product, one market, one system. Then prove the series-level stop and cancel in a Market and in the Crossing System. Record the filter parameters and every change with the time, the person and the reason. Test that the participant, not the vendor, can change the filter within the required time.
What changed in the instrument
Item 68 replaces Rule 5.6.3. The old automated order processing language becomes Trading System language, the five suspension dimensions replace the old four, and the series-level stop and cancel is extended to a Crossing System. Subrule (2) makes direct control an express duty.
Evidence an auditor or ASIC asks for
| Category | Record to keep | Retention |
|---|---|---|
| Control inventory | The control inventory mapped to each paragraph of 5.6.3(1), with the system, the owner and the activation method. | Current, plus version history. |
| Filter records | The filter parameters in force, the change log with time, person and reason, and the approval for each change. | Seven years. |
| Suspension tests | A test of immediate suspension, limitation or prohibition for each of the five dimensions, with the elapsed time. | Current, with date and result. |
| Series test | A test of series-level stop and cancel in a Market and in the Crossing System, including already-entered messages. | Current, with date and result. |
Common gaps
- The kill switch stops all trading but cannot stop one algorithm or one product.
- The filter change log records the new value but not who changed it or why.
- The Crossing System is not covered by the series-level cancel test.
- The vendor controls the filter, so the participant cannot show direct control.
What to do before 17 March 2028
- Map every control to the five dimensions and the two series-level actions.
- Run and time a test for each dimension.
- Retain the filter parameters and a change log with person and reason.
- Confirm direct control contractually and technically.
Dates and cross-references
Commences: 17 March 2028 (Rule 2 of F2026L01223 and the registration date). Retention: Seven years for the related monitoring records.
Read with: 5.6.1, 5.6.3A, 5.6.3B, 5.6.12, 5A.5.2.
Source
This page reads ASIC Market Integrity Rules (Securities Markets) Amendment Instrument 2026/574 (F2026L01223), Schedule 1, item 68, against the current compilation Compilation No. 6 (F2024C01108). Retrieved 2026-10-19. The requirement above is our own statement, not the instrument's wording. Not legal advice; does not certify.