Help And Support
Trading Our Products - General
Trade matching control
The Matching Control is a mechanism which will prevent a customer from matching his own buy or sell orders. Therefore, if an order is working on the market, any opposite order tentatively sent by the user for the same account, same counter, and same or better price will get rejected.
For example, if a customer using account no. 0123456 keys in an order to buy 1,000 shares in counter A at S$1.00 and uses the same account to key in an order to sell 1,000 shares in counter A at S$1.00 or lower, the sell order will be rejected.
Why couldn’t you match your own trades?
Section 197 (1) of the Securities and Futures Act prohibits any person from creating or doing anything that is intended or likely to create a false or misleading appearance of active trading in any securities on a securities market, or with respect to the market for, or the price of, such securities.
Wash sale could have the effect of creating such false or misleading appearances. Under Section 197(3) read with section 197(4) of the SFA, a person engaging in wash sales in securities is deemed to have created a false or misleading appearance of active trading in securities on a securities market unless the person establishes that the purpose for which he conducted the wash sale was not, or did not include, the purpose of creating a false or misleading appearance of active trading in securities on a securities market.
What would the rejection message be?
The rejection message is “You are not allowed to match your own order (GL029). Please check your order and submit again”.
How does it affect you?
Your orders could be rejected if your Buy price is same as/higher than the current best Ask (selling) price or your Sell price is same as/lower than the current best Bid (buying).
Why are my orders rejected?
Your orders could be rejected for the following reasons:
- You have submitted an order with price that is more than 20 bids away from the last done price;
- You have submitted an overnight order with price that is more than 20 bids of the previous day’s closing price during the Pre-Opening routine at 8:30am (Singapore time);
- Your Buy price is higher than the current best Ask (selling) price or your Sell price is lower than the current best Bid (buying);
- You have exceeded your Trading limit. You can contact your broker for clarifications on reviewing your trading limit.
When will Trade Matching Control be implemented?
The Trade Matching Control will be implemented on 20 March 2013.
Trading limits and how they work
After you have successfully opened a cash trading account with us, we will assign buy and sell trading limits for the account.
Credit assessment will be conducted based on the information furnished in your account opening form. The trading limits will then be assigned in accordance with the credit assessment.
We will also take into account other considerations in determining the trading limits, including recommendations from your Trading Representative and relevant supporting documents e.g., recent CDP, bank account statement, or income tax assessment.
You can contact your broker for clarifications on reviewing your trading limit.
Instant limit recycling
You can enjoy instant limit recycling for SGX contra trades and US (NYSE, AMEX, and NASDAQ) intra-day trades. You can continue with your trading without going through the hassle of requesting your broker to restore your trading limit into your iOCBC Cash Trading Account.
Instant limit recycling is only available for trades executed in the SGX and US (NYSE, AMEX and NASDAQ) ready market; trades executed in the unit-share and buy-in markets are excluded.
Kindly refer to the table below for more details:
Description Trades that enjoy instant limit recycling Trades that do not enjoy instant limit recycling Types of trading account Cash Trading Account
(under the same trading account number)
Share Financing Account
Share Borrowing Account
Payment mode Cash only CPF, SRS Type of sell order Online sell trades with matching buy trades:
For SGX and US:
Same-day buy trades must be executed in iOCBC before the sell trades
For SGX only:
Any outstanding buy contracts (i.e. all unsettled buy contracts, inclusive of overdue contract)
- Broker-assisted sell orders
- Force selling conducted by OSPL
- SGX Short-selling
- Selling shares from CDP free balance
You can enjoy instant limit recycling in your iOCBC Cash Trading Account so long there is a matching buy trade for the same shares under the same trading account.
Amount of trading limits recycled in your iOCBC cash trading account during intra-day depends on the selling price of your sell trades, whether it constitutes a gain or loss. Please refer to the illustrations below for more details.
For SGX and US markets (NYSE, AMEX, NASDAQ)
Illustration 1a: Intra-day matching buy and sell with contra gain
Buy 1,000 ABC shares at S$1.00
Sell 1,000 ABC shares at S$1.50 (contra gain of S$500*)
Existing limit calculation New limit calculation Action Approved limit (1) Limit utilised (2) Available limit (3) = (1) - (2) Recycled limit (4) Available limit (5) = (3) + (4) Buy S$5,000 S$1,000 S$4,000 S$1,000* S$5,000 Sell S$10,000 S$1,500 S$8,500 S$1,500 S$10,000
*Note: The contra gain of S$500 will not be reinstated to the customer’s buy limit.
Illustration 1b: Intra-day matching buy and sell with contra loss
Buy 1,000 ABC shares at S$1.00
Sell 1,000 ABC shares at S$0.40 (contra loss of S$600)
Existing limit calculation New limit calcuation Action Approved limit
(3) = (1) – (2)
(5) = (3) + (4)
Buy S$5,000 S$1,000 S$4,000 S$400** S$4,400** Sell S$10,000 S$400 S$9,600 S$400 S$10,000
i. When customer sells 1,000 ABC shares at S$0.40, he incurs a contra loss of S$600. Henceforth, only S$400 is being recycled at the buy side in his iOCBC cash trading account. He will not be able to get back his full buy limit of S$1,000.
For SGX market
Illustration 2: Inter and Intra-day multiple buy orders and sell with contra loss
Approved buy limit: S$10,000a
Approved sell limit: S$20,000a
Existing limit calculation New limit calculation Quantity / price Limit utilised
(c)= (a) – (b)
Remarks Recycled limit
(d) + (c)
Day 1: Buy 5,000 at S$0.30 S$1,500 S$8,500 Average buy price: S$0.50 S$2,1003 S$7,100(2+3) Day 2: Buy 5,000 at S$0.70 S$3,500 S$5,0002 Day 2: Sell 7,000 at S$0.30 S$2,100 S$17,9004 Contra loss : S$1,4001 S$2,1005 S$20,000(4+5)
*Note: The contra gain of S$500 will not be reinstated to the customer’s buy limit.
When customer sells 7,000 shares at S$0.30, he incurs a contra loss of S$1,4001 (i.e. based on an average buy price of S$0.50). The contra loss of S$1,4001 will be marked down against the recycled buy limit during intra-day. Henceforth, only S$2,1003 is recycled to the buy limit based on the selling price of S$0.30 for 7,000 shares.
Available buy limit will only be S$7,100 (i.e. S$5,0002+ S$2,1003).
Recycled sell limit will be S$2,1005 based on the selling price of S$0.30 for 7,000 shares.
Available sell limit will be reinstated to S$20,000.
If you have selected cash as the payment mode for your sell orders and at the same time, there is a corresponding outstanding buy contract, iOCBC will auto-contra against your outstanding buy contract regardless of quantity, on a “first-in-first-out” basis. The setoff will be reflected in the settlement currency of the buy contract.
- Contra / setoff will be applied on trades in foreign securities exchanges. For securities transacted in the Indonesia Stock Exchange, Philippines Stock Exchange and Stock Exchange of Thailand, contra / setoff will only apply to intra-day trades of the same securities (i.e. buy and sell on the same trade date).
- Contra is not allowed for CPF / SRS transactions. Please refer to CPF / SRS trading at iOCBC.
The amalgamation option allows you to combine your orders based on your average traded price. Instead of incurring a minimum brokerage charge for each order, you can save on your brokerage fee by combining all your trades.
The following conditions apply when using amalgamation option:
- You must have indicated “Yes” for amalgamation on all contracts
- The amalgamated trades must be of the same trading day
- The amalgamated trades must be of the same stock
- The amalgamated trades must be of the same settlement currency
- The amalgamated trades must be of the same action (e.g. buy action amalgamates with another buy action)
- The amalgamated trades must be the same payment mode
Under normal circumstances, your order will be rejected by the SGX trading system if the order price is more than 20 bids away from the last done price. “Force order” is a function that enables you to ‘force’ your order through and put your order on the queue.
Although force order allows you to submit order not within the normal price range, you are baring the risk of keying in undesirable price by mistake. Force key is granted to client at the sole discretion of your Trading Representative. We advise you to exercise caution when you submit order with force key.
Kindly refer to SGX website for more information on Minimum Bid Sizes.
Force order is not allowed for foreign markets. Force order should not be used when the trade not likely to be matched.
Selling shares bought through other brokerage firms
For SGX trading, you can sell shares through iOCBC provided that they are held as ‘free balance’ in your CDP Securities Account. If you are unsure of your shares balances, you may visit CDP personally to request for a copy of your latest Statement of Shareholdings or login to CDP Internet Access. Please call CDP at (65) 6535 7511 or visit www.cdp.com.sg for more information.
For Bursa Malaysia or foreign markets, you will need to ensure that your shares are deposited in OCBC Securities Nominees account. Otherwise, please ensure that transfer of the foreign shares is arranged to facilitate your sales of shares through OCBC Securities.
To avoid any failed trades, investors are strongly encouraged to buy and sell through the same brokerage company and under the same trading account number. An investor who buys shares through a broker at Company A and immediately sells the shares through another broker at Company B must make advance payment to Company A on Trade date before 8pm via EPS or bill payment so that the shares can be settled in time for delivery on T + 2 market day (before 1.30pm).
Unfulfilled ordersOrders that are not fulfilled will expire automatically at end of the day. If you wish to place the same trade order for the next market day, you are required to resubmit accordingly.
Common mistakes / errors during order submission
Selecting wrong trading account number
Please ensure that you have selected the correct trading account on the buy / sell ticket before proceeding with your order submission.
You can double-check the details at the order book again. If you have made a mistake in selecting the wrong trading account number, please withdraw and resubmit your order again immediately.
In the event that the order is fulfilled and cannot be withdrawn, please contact your Trading Representative immediately on Trade Date for further assistance.
Selecting wrong shares / quantity of shares
If you have sold the wrong shares or wrong quantity, kindly perform a buyback on your own immediately on the same trading day.
SGX will regard the sale transaction as a “short-sell” and will conduct a buying-in at 3.30pm on Trade Date + 2 market day if:
- you are unable to cover back the short position on the same trading day; or
- you only realised your mistake on the next market day and do not have existing shares in the free balance of your CDP account at 1.30pm on due date for delivery
Realising mistake on trade date + 1
We advise you to exercise prudence in your online order submission. You will not be able to perform a buy back on your own on the subsequent day to cover this short-sold position as the due date of the purchase contract will be after that of the short-sold position.
In the event that you do not have existing shares in the free balance of your CDP account on due date for delivery, SGX will regard the sale transaction as a “short-sell” and will conduct a buying-in at 3.30pm on Trade Date + 2 market days.
Entering incorrect price for SGX market
If you entered incorrectly the following prices:
a) Price (buyer) is greater than seller price
b) Price (seller) is lesser than buyer price
If you have entered a higher “buy” price than the “seller” price, your order will be matched accordingly at the seller's price, vice versa.
We advise you to take note of this and carefully check your online order submission in light of these changes.