Does a mistrade need to be reported by a participant to be declared a mistrade?

Does a mistrade need to be reported by a participant to be declared a mistrade?

• A. False
• B. True
• C. Only for large trades
• D. Not specified in rules

Answer: (A)

A mistrade is an erroneous trade identified by market surveillance or the exchange based on criteria like an anomalous price, size, or timing. It does not require a participant to report it in order to be declared; the authority can classify and cancel or adjust the trade on its own when the rules dictate. Participants may request a reversal or provide information, but that reporting isn’t a prerequisite for declaring a mistrade.

A mistrade is an erroneous trade identified by market surveillance or the exchange based on criteria like an anomalous price, size, or timing. It does not require a participant to report it in order to be declared; the authority can classify and cancel or adjust the trade on its own when the rules dictate. Participants may request a reversal or provide information, but that reporting isn’t a prerequisite for declaring a mistrade.