Aussie option times

[getthatintoya]

Hi @def can you please clarify why we can't trade options on the ASX in the first 30 minutes of trade. Can't place,amend or close. Your live chat person said it was an ASX requirement for retail traders. I talked to ASX about this and they know nothing about it. Their website also says you can trade from when the market opens. I also talked to some other traders that use different brokers and they have no limitations either.
This started happening about a month or two ago. Thx

 

[def]

Hi @def can you please clarify why we can't trade options on the ASX in the first 30 minutes of trade. Can't place,amend or close. Your live chat person said it was an ASX requirement for retail traders. I talked to ASX about this and they know nothing about it. Their website also says you can trade from when the market opens. I also talked to some other traders that use different brokers and they have no limitations either.
This started happening about a month or two ago. Thx

As you know the Aussie market has an opening stock rotation that takes about 10-15 minutes to complete. During that time, market makers generally do not quote. This leaves wide or no markets which has previously led to a number of bad fills and busts. The exchange doesn't like busts (we and clients don't either as bust fees are extremely high - often greater than the loss if the trade was not busted). In communications with the exchange, we were "encouraged" not to commence option trading until after the rotation. We note a number of other brokers do not allow orders to go in during the rotation either.

The good news is that the ASX has announced they will remove the opening rotation and presumably market makers will start to quote at or shortly after the opening.

 

[getthatintoya]

Hi @def thx for the reply. So a couple of points 1) opening rotation finishes at 10.10am so 20 minutes after open why are you holding orders for another 10 minutesafter that? 2) Don't we as clients sign a form saying that we know what we are doing and if we are a dumb shits IB takes no responsibility? 3) just because there are no MM on screen doesn't mean they won't trade with you if you submit an order. 4) So we as experienced traders are punished and are winning/losing money cause we can't enter/exit positions in that opening period?
I am now forced to do stupid things like put gtc orders in the previous day at way otm on existing positions and anything that I might want to trade first up. (this has now stopped working too :-(

 

[def]

Hi @def thx for the reply. So a couple of points 1) opening rotation finishes at 10.10am so 20 minutes after open why are you holding orders for another 10 minutesafter that? 2) Don't we as clients sign a form saying that we know what we are doing and if we are a dumb shits IB takes no responsibility? 3) just because there are no MM on screen doesn't mean they won't trade with you if you submit an order. 4) So we as experienced traders are punished and are winning/losing money cause we can't enter/exit positions in that opening period?
I am now forced to do stupid things like put gtc orders in the previous day at way otm on existing positions and anything that I might want to trade first up. (this has now stopped working too :-(

1. need market makers to start quoting and the 20 minutes was the guidance received.
2. yes but there are over-riding regulatory factors. ie. sometimes we are expected to be big brother or risk fines or deal with costly complaints. FYI, a bust used to cost 4K AUD and was only recently lowered to 1,500 AUD.
3. agree
4. sadly, yes for the time being. The auction is scheduled to go away Q3, 2024 (initial typo i put 2025)

This is not something we desire to do. We'll continue to evaluate when liquidity comes to the screens in the meantime and see if we can move the delay forward.