ASX faces A$1 million damages claims over cancelled trades

ASX faces A$1 million damages claims over cancelled trades

The Australian Stock Exchange (ASX) is being sued by traders for almost A$1 million in damages following the cancellation of futures trades earlier this year.

The traders allege they lost money when the Sydney Futures Exchange cancelled some trades immediately after the publication of the quarterly consumer price index in July. The SFE pulled 337 Three Year Bond and Bank Bills futures trades after discovering the transactions were made at incorrect prices.

The suit has been launche initially by six firms, but others are expected to join, pushing the level of damages as a high as A$40 million.

In a review published last month, the ASX concluded that the trades had been cancelled in accorrdance with its operating rules on error resolution. The verdict led to criticism of the ASX's dual role as the marketplace regulator and operator.

The Exchange has set up a working group to review its policies and procedures for error resolution in the future.

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