Question 2.1.12 Data Field (15)
Reference to documents: TRUM, Annex II, standard contracts – order conditions PTR & SLO (Data Field No 15)
XXXX Exchange (organized marketplace) offers order type named „stoploss”, where price trigger may either be related to the same instrument or to a different instrument (trader’s choice at the time order is entered). How should such orders be reported, are we correct to assume that such orders should always be reported with “order condition” = PTR (Price Trigger)?
1. order of XXXX Exchange type “stoploss” is entered at XXXX Exchange, in instrument X, with price trigger related to the same instrument X;
2. order of XXXX Exchange type “stoploss” is entered at XXXX Exchange, in instrument X, with price trigger related to a different instrument Y.
Reading description related to order conditions (Data Field No 15) in TRUM p. 43-44/150, are we correct to assume that we should report orders of XXXX Exchange type “stoploss” in the following manner:
Data Field No 15 (Order condition) – should have value „PTR” regardless of the fact whether actual price condition is related to the same instrument or is related to a different instrument.
Data Field No 15 (Order condition) aims at capturing the condition for the order to execute.
A Stop Loss order (SLO) is submitted to the market as a limit order or market order once a certain price condition of an instrument is met (including profit taking). The price trigger refers to the same tradable instrument.
Price Trigger condition (PTR) applies to an order which will not be available for execution unless a specific trigger price is reached, similar to a Stop Loss, but may be triggered across product pricing, i.e. the price trigger may be based on a different contract or index.
With regard to the example above, the Agency expects that orders will be reported indicating in Field No (15):
1. For the order in the first example, having a price trigger related to the same instrument X, should be reported as SLO (stop loss) in; and
2. For the order in the second example, having a price trigger related to a different instrument Y, should be reported as PTR (price trigger) in Field No 15.
Please refer to Question 2.1.13 for further information on Stop Loss orders.