Which of the following does the Model Code not recommend to prevent technical errors by etrading devices?
A) A manual "kill button" to disable the system's ability to trade and cancel all resting orders.
B) An 'inbound message rate" feature that monitors the number of confirmation messages that are sent from trading venues within a specific time period.
C) A "repeated automated execution throttle" monitoring the frequency of strategies that are filled and then re-entered into the market without human intervention through automated trading systems.
D) A "fat-finger quantity" feature limiting the size of orders that can be sent from the trading systems and preventing order quantities above the fat-finger limit from leaving the system.

Question

Quizplus · Accepted Answer

The Model Code recommends implementing an "inbound message rate" feature that monitors the number of confirmation messages that are sent from trading venues within a specific time period. However, it does not recommend the other options listed. A manual "kill button" can be helpful but should not be relied upon as the primary means of preventing technical errors. The "repeated automated execution throttle" and "fat-finger quantity" features may limit trading flexibility and should be implemented cautiously.

Which of the Following Does the Model Code Not Recommend