The Exchange rule on Material Unrepresentative Price Trading is designed to ensure as far as practicable that Members who trade at significant bone fide price errors have a mechanism to have the trades investigated by the Exchange and cancelled or repriced if the Exchange determines in its absolute right that is the appropriate action in all the circumstances.

Furthermore, this rule highlights that Members who take or attempt to take advantage either knowingly or not of Material Unrepresentative Price orders should have no expectation of profiting from the Material Unrepresentative Price orders of other Members.

If the Exchange determines that a transaction in a Contract has taken place at an unrepresentative price the Exchange may, within its sole discretion, cancel or reprice the transaction as soon as practicable. The Exchange may consider the following factors when considering whether to cancel a transaction:

• the opening price levels of the Contract on the System;
• the current market conditions, including levels of activity, volatility, liquidity and whether the market was "in-running";
• the last trade price for the Contract;
• the time stamped order flow for that contract
• the information regarding price movements in related markets or Contracts, the release of economic data, or other relevant news immediately before or during the trading session;
• a manifest error;
• the proximity of the trade to the close of the market; and/or
• the impact of the erroneous transaction on other transactions
• the fair market price if one exists at the time of the transaction
• the financial significance and/or materiality of the transaction
• whether a cancellation would be equitable in the Exchanges absolute opinion on all party's to the trade when all the circumstances are considered.

When the Exchange cancels or reprices a transaction in a Contract because of an unrepresentative price, the Exchange shall as soon as practicable notify the Member(s) of the cancellation or reprice by electronic mail, notifications in account message box or through any other means that the Exchange deems appropriate. Where relevant, trading and or expiry fee rebates will be calculated as soon as practicable with appropriate postings made to member account(s).

A Member that executes a transaction in a Contract at a price that he/she believes is unrepresentative may for a non-refundable fee of $200, (request as soon as practicable, which under normal circumstances will be within 10 minutes, when a contract is considered 'in-running' or 'live' by the Exchange in its absolute right, or within one Trading Session in all other circumstances of the Order's execution) contact the Exchange to seek by mail on help@intrade.com with a subject line "Material Unrepresentative Price" to cancel the transaction.

If the Member does not have sufficient funds in his or her trading account to cover the non-refundable fee the request will not be entertained by the Exchange. The Exchange will respond to such a request as soon as practicable stating that the request has been received, indicating an approximate time for a formal response and at such time the fee will be taken from the members account. The Exchange is not obliged to act on any request and the Exchange's cancellation or modification of transactions pursuant to this Rule will be final.

Any third party which shall include the Exchange may also request the application of this Rule 1.2 within the time framework detailed above. In such circumstances the Trades called into question will be evaluated in accordance with this Rule and the third party will be subject to the non-refundable fee of $200.

Trades resulting from quantity errors are not covered by this Rule 1.2.

If an unrepresentative price trade results in trade executions at multiple price levels, the referenced last trade price shall be the last trade price prior to the entry of the alleged unrepresentative price trade. If the alleged unrepresentative price trade is the first trade in a contract that has not previously traded, the Exchange will determine the fair value estimate which will be gauged against the unrepresentative price trade range to determine the application or otherwise of this rule.

If a unrepresentative price trade causes a stop order to become elected and subsequently filled, these trades may be cancelled by the Exchange, or the trades may be re-priced in line with the last traded price which occurred immediately prior to the price deemed to be an unrepresentative price (or the preceding settlement price, whichever occurred more recently).

While it is not possible to comprehensively define an unrepresentative price, purely for guidance purposes only, the Exchange may consider for 0-100 contracts a price that is 20% of the total contract value (ie 20 full ticks) or greater, away from what the Exchange considers to be fair value.

For totals contracts, the Exchange may consider a price that is 20% or greater from the last trade price depending on time stamps. Furthermore, in volatile, fast moving or in-running markets it is possible that a higher significance level than 20% will be appropriate.

Orders on in-running Financial Markets are held for 0.5 seconds.

When a member cancels an existing order the cancellation is processed immediately.

The rationale behind this industry standard feature is to protect people who enter orders into a market from losing money as a result of access to slower information over which they have no control e.g. a delayed TV signal.