Exchange Participants (EPs) are advised to review and set their own Order Consideration Limit (Limit) based on their business needs and financial strength to reduce the risk and impact of input errors. EPs should have enough resources to fulfill their obligations and handle any consequences if input errors occur. Notional Value Checks should be applied when submitting orders and trades to OTP-C to make the Limit effective for risk control purposes. EPs using Broker Supplied Systems (BSS) provided by vendors must arrange with their BSS vendors for the Notional Value Checks system setting. The Limit and Notional Value Checks are additional control measures to prevent erroneous order/trade input, and EPs are fully responsible for maintaining proper internal controls in handling clients’ orders and transactions. The Exchange recommends that all EPs review their Limit and internal controls in a timely and prudent manner. If EPs intend to modify the Limit, they must complete and submit the eService “CT027” through Client Connect or return the form “Confirmation of OTP-C Order Consideration Limit Setting” available on the HKEX website at least three working days before the intended effective date.
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