Sanford Securities Limited now provides access to Straight Through Processing for the order placement of securities traded on the Australian Stock Exchange

WHAT IS STRAIGHT THROUGH PROCESSING?

Straight Through Processing (STP) refers to the automated processing of a securities trade through the Stock Exchange Automated Trading System (SEATS), without any manual intervention or duplicate processing. STP enables trades to be processed more efficiently and accurately. Sanford Securities STP service for the order placement of securities has been approved by the ASX.

WHAT DOES STP MEAN TO ME?

Once you have confirmed your order via the Sanford Securities website it will be automatically placed into the "market" (SEATS) provided it meets certain criteria. With no human intervention the speed at which this occurs is significantly faster.

It is possible for your order to be matched with another order also placed by Sanford Securities. This "crossing" may be with an order by another client of Sanford Securities or by Sanford Securities itself.

WHAT CRITERIA MUST MY ORDER MEET?

STP is only available on "limit" orders for securities with a normal status (i.e. not suspended or in a trading halt) and is operated between the hours of 9:30 am and 4:00 p.m. Eastern Standard Time. STP processes your order through a series of filters to deem whether or not your bid or ask is at a "marketable price" and complies with the requirements of the Corporations Law, the ASX Business Rules and all other relevant regulatory or legal requirements, and if so it will automatically enter the market.

If your bid or ask does not meet the above criteria, then it will be referred to a Designated Trading Representative (DTR) for evaluation. In some cases the DTR has the authority not to place the order on market until you become contactable to confirm the order.

WHAT IS THE SEATS OPERATING SCHEDULE AND HOW DOES IT AFFECT STP?

The operating schedule defines the various phases of SEATS and at what time they happen. It is important that you have an understanding of this so you can appreciate how you order will be executed in a straight through processing environment.

An important point is the Opening phase, in which the market opening times are staggered depending on the starting letter of the ASX code. SEATS will not allow input of orders during these opening times. The schedule below describes these various phases:

Time	Market Phase	Notes
9:30 to 10:00 am	Pre-opening	SEATS allows the entry of bids/offers; order amendments; order cancellations; ticking of orders; reporting of off market trades; trade cancellations. SEATS does not execute trades automatically during pre-opening.
Approx 10:00 am to 10:09 am	Opening	SEATS opening times are staggered depending on the starting letter of the ASX code for the security. SEATS does not allow the input of orders during the opening, whether for the market as a whole, or for an individual security. Group Opening Time Codes 1 10:00:00 am A - B 2 10:02:15 am C - F 3 10:04:30 am G - M 4 10:06:45 am N - R 5 10:09:00 am S - Z
Approx 10:09 am to 4:00 pm	Normal Trading	SEATS allows the input of bids/offers; order amendments; order cancellations; ticking of orders; enquries; input of trades; trade cancellations. SEATS executes trades automatically during normal trading.
4:00 pm	End of trading	The market is placed into an enquiry only mode to allow for system processing or closing. This may last for a few seconds to a few minutes.

ORDERLY MARKET AND MANIPULATIVE TRADING

As trading participant, Sanford Securities must ensure the conduct of an orderly market and prevent manipulative trading, including insider trading, false trading, market rigging and suspect transactions. Therefore in utilising STP you should realise that your order may be scrutinized by both the filter and a Designated Trading Representative to ensure that it:

(a) does not offend the requirement for an orderly market;

(b) is not intended as a manipulative trade.

(c) complies with the provisions of the SEATS reference manual;

(d) complies with the instructions and directions issued by SEATS market control;

(e) does not intentionally take advantage of:

(i) a breakdown or malfunction in the Australian Stock Exchange procedures or systems;

(ii) an error in entries made by the Australian Stock Exchange within SEATS or the Derivatives Trading Facility.

Sanford Securities is required to prevent a bid, offer or dealing if a client intends to create, or taking into account the circumstances of the order Sanford Securities reasonably suspects that the client has placed the order with the intention of creating a false or misleading appearance of active trading in any securities or with respect to the market for, or the price of any securities, or market rigging or manipulation or suspect transactions.

HOW DO I ACTIVATE STP?

The Australian Stock Exchange requires Sanford Securities to obtain your written acknowledgement that you understand STP and that you authorise the activation of it on your account.

You should understand that you are strictly liable for any instructions submitted by you or any authorised person on your behalf executed via STP and that all instructions placed by you or any authorised person is correct. We are not liable for any errors, omissions or failure by you or any authorised persons in using these electronic systems.

You acknowledge that Sanford Securities is not responsible or liable for the performance, suspension, interruption, failure or error in STP or for any acts of third parties which impact on the timing, accuracy or completeness of information, orders or the execution of orders using STP. Accordingly, and without diminishing any of our rights under your share trading agreement with Sanford Securities, we are not liable for any direct loss or damage, loss of profits or contracts or indirect or consequential loss or damage whether arising from negligence, breach of contract, or any other claim which may be suffered or incurred or which may arise directly or indirectly in respect of any goods or services supplied in relation to STP, your use or inability to use STP or in respect of a failure, error or omission by Sanford Securities to comply with its obligations in relation to STP.

Please be advised it is a condition of the activation of STP on your account that you have a Broker Sponsorship Agreement with Sanford Securities. Please provide your Holder Identification Number (HIN) accordingly.

In the case that you do not currently have a Broker Sponsorship Agreement with Sanford Securities, please read the attached terms and conditions of Broker Sponsorship Agreement and sign the declaration.

HOW LONG DOES STP ACTIVATION TAKE?

Upon receipt of your written authority and acknowledgement relating to STP, Sanford Securities will activate STP on your account in one working day. You will receive confirmation of STP activation by email.

For more information on STP please contact customer service on 1300 658 860 or via haoyah@sanford.com.au.

View STP application form