How to submit a Guaranteed Cross without pre-trade allocation This guide is split into two sections, the first deals with what a Guaranteed Cross is and lists the main exchange rules that apply to them, and the second is a step by step guide to entering them using the EasyTrade GUI. All Exchange rules referenced below are valid as of the 20th July 2009. Please be aware they are subject to change. Guaranteed Cross Explanation Guaranteed Crosses are pre-negotiated trades that belong in the category of OTC/Ex-pit/Wholesale Trades. Both the Buy and Sell sides of the order are submitted at the same time, and trade against each other without entering the Central Order Book on the exchange. The individual sides are matched automatically once the order has been entered successfully. Contract Rules: • The Contracts on which they are supported can be found on pages 14-15 in the document “LIFFE Trading Procedures Annexe 1 - LIFFE Trading Procedures” (http://www.euronext.com/fic/000/045/026/450267.pdf) • These can be traded against any Exchange recognised strategy including inter-contract spreads. Price Rules: • When there is a two way market greater than one tick wide, the price of the Guaranteed Cross must be within, and not outside of or at, the Best Bid and Offer. • If there is no Bid (or Offer) then you must trade at a higher price if there is a Bid and a lower one if there is an Offer. • These do not require a contract to have traded before they can be submitted against it. Volume Rules: • When the market is only one tick in width, the price must be at either the Best Bid or Offer and Minimum Volume thresholds apply which can be found in Pages 14-15 of the document “LIFFE Trading Procedures Annexe 1 - LIFFE Trading Procedures” (http://www.euronext.com/fic/000/045/026/450267.pdf) Time Rules: • These are to be submitted as soon as practicable. Final judgement as to what is practicable lies with the exchange. • These can be traded up until the close. • These can be traded up until the last trading day available for the respective contract. RFQ Rules: • If either the Bid or Offer is missing, an RFQ must be submitted. Having submitted it, you must wait 10 seconds for Options, 5 seconds for Futures after which you then have 30 seconds to submit your order. Approval Rules: • These are approved automatically upon submission (i.e. no human interaction required). Mandatory Fields: • Price/Volume. Also all Guaranteed Crosses require the Account Code field to be populated as they are only available on exchanges clearing through Clearing 21. Please see our NYSE Euronext Order Fields Summary documentation for additional Exchange specific details. The Exchange rules referenced above are subject to change so please ensure you are aware of the latest amendments. Step by Step Guide to submitting a Guaranteed Cross without pretrade allocation using the EasyTrade GUI 1. Bring up an OTC/Ex-pit/Wholesale Trade Ticket against the instrument you wish you trade. 2. Enter the Volume. 3. Enter the Price. 4. Select the order type “Guaranteed Cross”. 5. Enter an Account code of H or select a Client whose default Account Code is = H, for both the Buy and Sell Side of the order. 6. If placing this order on the Amsterdam exchange, please ensure you set a Client has a default User Ref value set. It can be a simple value such a “1”. 7. If the order is a strategy, populate the volume and price of each leg using the “Strategy Legs” Tab (See screenshot below) 8. If there is no Bid or Offer in the market you must submit an RFQ. 9. Click the “Enter” button to submit the order. 10. If the order is submitted successfully, both sides of the order will match automatically. And two fill rows will appear in the Filled Orders window. 11. If an error occurs when submitting the order it will look like this, asking you to refer to the Message Log (Note the red error message at the bottom): 12. On the system tab of the Message Log Window will be an error message indicating what the problem is (in this case the Account Code is missing from one side of the order): 13. If you have any queries about why your order is being rejected, please call LIFFE Market Services (LMS) on 0207 379 2001, and call us on 0207 650 4401 should there be any further confusion.