Trade Annulment & Unfair Trading Practices

On rare occasions, to preserve market integrity, Delta Exchange reserves the right to annul trades that were erroneous or were done on account of fraud or market manipulation, or which occurred in abnormal non-orderly market. Any trades that were executed using the profits from anulled trades will also be subject to annulment.

Mis-trade rules that apply to all contracts

  1. Trades executed far away from prevailing market price: Trades that are executed at prices far away from the prevailing market price (as measured by the underlying’s price and the contract’s fair mark price) due to volatile market conditions or intentional market manipulation will be treated as mis-trades and are liable to be annulled.

  2. Trades in which one trader or a group of colluding traders manipulate trading in thinly liquid order books to create price action resulting in abnormal profits for the traders will be treated as mis-trades and are liable to be annulled.

Mis-trade rules that apply to options contracts

Any options trade that happens more than 20% away from the theoretical price of the options contract is liable for being considered as mispriced. If the execution price of your options trade is mispriced, you should send an email to [email protected] as soon as possible. Delta Exchange will conduct an investigation and will annul the trades in question if it is clearly established that the trades happened in abnormal and exceptional circumstances. In such situations, the profits made by the winning trader will be clawed back to make the losing side whole.

Unfair trading practices

Traders indulging in unfair trading practices that include but are not limited to exploiting technical and systematic glitches, manipulating prices by buying and selling whole order book simultaneously, price fishing etc. will be banned. Any trades executed as part of unfair trading practices will be annulled.