The Australian Securities Exchange and TransMarket Group, the
derivatives and equities trading firm, went to
Australia’s federal court on October 12 after
mediation between the parties failed to resolve a complaint by
TransMarket told Futures and Options World that the case
centres on the allegation that ASX improperly cancelled trades
executed by the plaintiff.
TransMarket’s complaint dates back to July 25
2007, a day when the Australian Consumer Price Index was
announced, causing volatile trading patterns in interest
The trading firm claims that ASX cancelled, or
'busted’ some trades on that day, at fair market
TransMarket does not object to that. Its grievance arises
from the fact that it had engaged in some spread trades.
TransMarket claims that with some of them, the ASX busted one
leg of the trade but not the other, causing losses to the
The court case has been scheduled to last up to two weeks,
according to TransMarket.
A spokesperson for the ASX said the exchange was unable to
comment on the saga. However, sources close to the exchange
insisted that the bourse was "ready to vigorously defend the
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