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--- name: asic-market-integrity-rules-automated-trading description: Compliance engine enforcing ASIC Market Integrity Rules (MIRs) for Automated Order Processing (AOP), including pre-trade filters and kill switches. domain: regulatory-compliance-global subdomain: regulatory tags: - compliance - asic - australia - pre-trade-filter - kill-switch brokers_frameworks: - generic version: "1.1.0" author: System license: MIT --- ## When to Use Use this skill when deploying automated trading algorithms in Australia. The Australian Securities & Investments Commission (ASIC) Market Integrity Rules (specifically regarding Automated Order Processing or AOP) legally mandate that all electronic orders pass through direct, participant-controlled pre-trade filters and that an immediate "Kill Switch" is available. ## Prerequisites - Python 3.9+ - A predefined risk configuration containing maximum order value, maximum volume, and allowable price deviations from the last traded price. ## Workflow 1. **Check Kill Switch**: The engine first verifies if the `AsicKillSwitchManager` has been triggered. If so, all orders are immediately rejected. 2. **Pre-Trade Filtering**: If the system is live, the `AsicAopPreTradeFilter` intercepts the order. 3. **Volume & Value Checks**: The order is rejected if its total value or volume exceeds the configured hard limits. 4. **Price Deviation Check**: The order's limit price is compared to the market's reference price. If it breaches the percentage deviation threshold, it is blocked to prevent market manipulation or "fat finger" errors. 5. **Approval**: Only if all checks pass is the order allowed to route to the broker. ## Common Pitfalls - **Passive Pre-Trade Filters**: Implementing filters that merely "alert" on breaches rather than actively blocking the order. ASIC requires active gatekeeping. - **Missing Global Kill Switch**: Implementing algorithm-specific pauses but failing to provide a global kill switch that can halt the entire AOP system instantly in the event of systemic failure. ## Verification Run `python scripts/test_asic_market_integrity_rules_automated_trading.py` to confirm that the kill switch, value limits, and price deviation filters correctly intercept and block non-compliant orders. ## Related Skills - `kill-switch-and-drawdown-circuit-breakers` - `sec-rule-15c3-5-risk-controls-us`