AENX Announcement: Circuit Breakers
We continue to add platform features to better safeguard our community users and to promote a fair marketplace for digital asset trading.
To better protect our community users and enhance the positive development of the cryptocurrency industry, our team has been implementing market circuit breakers and other security measures to continuously mitigate risk points that are identified. We strive to provide an environment free from the harms of potential manipulation by any bad actors, and to facilitate a fair, credible, and orderly functioning AENX marketplace for digital assets.
We are initially implementing the following exchange platform features in the AENX exchange engine:
1. Order Placements: Imposing a maximum percentage (%) deviation from the last traded headline market price for all traded pairs.
Exchange users will be unable to place a Limit Order (LMT) that is greater than 40% either above or below the latest headline market price. This is to prevent extreme order placements and to promote a liquid order book with reduced spreads. Users shall be notified on the trading user interface in the event maximum thresholds are exceeded and be requested to re-enter their order.
2. Limit Orders: Increased flexibility on the duration of order placements.
Users will now be able to choose between placing a Limit Order for a default duration of 24-hours or for the order to be Good-to-Completion (“GTC”). GTC orders shall also be subjected to an extended, but maximum time period as pursuant to the latest terms of use of the platform. We seek to consistently ensure prudent management of operational risks at AENX.
3. Trading Pause Mechanism On Single Pairs.
The trading in any specific pair may be temporarily paused due to a 15% or more price move in the pair over a rolling 5-minutes time period. Pauses can last for up 5-minutes from the trigger point. Open orders shall remain in effect on the book during the trading pause (unless cancelled by user), and no new orders can be placed during a pause until the trading pair reopens.
AENX reserves the right to notify users and structurally amend parameters strictly under the intention to promote a fair and orderly marketplace. We seek to impose minimum disruption to platform users where any intervention by such circuit breakers can only be trigged under exceptional circumstances and/or extreme volatility.
4. Headline Market Prices Only Impacted By “Meaningful” Trades.
For any trade or “cross” registered on the tape, only those equal or greater than a pre-defined minimum quantity of tokens (depending on the pair) will move the market price of the trading pair. Crosses of smaller quantities are still executed but not registered with the headline market price. Please refer to AENX’s Terms of Use (Section 8) for minimum quantities of each market pair.
