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Why was my Stake AUS order cancelled or rejected?

Stake is not a direct participant on the exchanges through which the Stake AUS services are provided. In Australia, Stake’s Service Partner FinClear Execution Limited (or ‘FinClear’) must comply with the Corporations Act, ASIC’s Market Integrity Rules (MIRs), and the Operating Rules of ASX & Cboe, which ASIC and the respective exchanges oversee. These regulations aim to prevent:

• Market manipulation
• Insider trading
• Other activities that may negatively impact the fair, orderly and transparent operation of Australia’s financial markets

At all times, FinClear is required to maintain a fair and orderly market, by continuously monitoring transactions and screening customer orders against pre-trade filters (known as vetting rules). 

Should an order trigger a pre-trade filter, Stake or FinClear may: 

• Reject/cancel the order 
• Contact the customer for more information 

Anti-Money Laundering (AML) legislation also requires Stake (and its Partners) to identify, mitigate and manage the risk of its services being involved in or facilitating: 

• Money laundering 
• Financing of terrorism 
• Predicate crimes 
• Market integrity offences 

You can read more about the regulatory requirements for Stake AUS here.

 

Types of orders that may be rejected, cancelled or questioned

An order may be rejected or questioned for a number of reasons, not all of which mean a particular order has been identified as a regulatory breach. 

Some possible reasons for order rejection, cancellation or investigation include: 

• An order for a security that is placed too far from prevailing market prices for that particular security (read more about the Anomalous Order Threshold here)
• A market-wide trading halt is impeding available market data for a security
• You have insufficient buying power or have active orders impacting your buying power
• A first-time buy order that is less than A$500 (also known as the Minimum Marketable Parcel of ASX securities)
• An order deemed to be unusual given a security’s recent trading history, (ie large or small volume or large % above or below last traded price) which, should it execute, may impact fair and orderly trading
• Additional orders entered at the same or different price as existing orders in a security’s orderbook
• An order entered shortly after market open or instructed to execute close to or during the closing auction
• The order has simply expired (learn more about EOD and GTC orders here)

An exchange can also cancel or reject an order if the security has been suspended, delisted or reconstructed. An order can also be invalid if the security is subject to a corporate action such as a stock split, merger or acquisition. You can learn more about corporate actions here.

ASX and Cboe can also cancel or amend market transactions in maintaining fair, orderly and transparent markets. If ASX or CBOE cancel a transaction, the benefits and entitlements of the transaction are lost. 

If your order won’t go through or has been cancelled/rejected and you believe none of the above reasons apply, please reach out to our customer support team and we’ll look into it.

What happens if my order triggers a pre-trade filter?

In some cases, your order may trigger a pre-trade filter, which means either:

 

• The order is rejected at the time of placement. If this occurs, you will be informed on the platform. Please review this message and reassess your order before re-submitting.
  
  
• The order may be routed for manual assessment. If this occurs, a representative of Finclear will assess the market conditions and your order instructions, and either process or cancel the order. If the order is cancelled, you will be notified via email.

 

Why was my Stake Wall St order cancelled or rejected?

Stake is not a direct participant on the exchanges through which the Stake Wall St services are provided. Stake’s U.S. partner, DriveWealth LLC (or ‘DriveWealth’), and its investors must comply with the Securities Exchange Act and the trading and operating rules for Nasdaq and NYSE, which the U.S. Securities and Exchange Commission (SEC) and respective exchanges oversee.

All orders submitted through Stake are subject to pre-trade checks and reviews by both Stake and DriveWealth. DriveWealth and Stake consider several factors when reviewing orders, including:

• The size and type of the order submitted
• The terms/conditions of the order
• The nature of the market for the security (demand)
• The recent trading activity of the security
• The transaction consideration (volume and price)
• The frequency in which orders are submitted
• The opportunity for price movement as a result of the order execution

DriveWealth can reject orders if it suspects acts of market manipulation, in complying with its regulatory requirements and risk controls. 

Read more about regulatory requirements for Stake Wall St here.

 

Types of orders that may be rejected, cancelled or questioned

An order can be rejected for several reasons and does not necessarily constitute an identified breach of regulation. 

Some common reasons for order rejection include: 

• An order price is placed too far from prevailing market price
• A market-wide trading halt results in missing market data for a security
• A limit order is deemed too aggressive. Our U.S. partner has measures in place to identify unrealistic and unreasonable orders in the context of the current market price.
• Your order is under the minimum size of US$10
• You’re trying to place a limit order for a fractional amount of stock. Limit orders can only be placed/executed as whole units, e.g. if you own 2.5 shares of $AAPL, you can only place a limit order for 2 $AAPL shares – the remaining 0.5 can only be sold via market order.
• You have insufficient buying power or have pending orders that are impacting your buying power  
• An order deemed to be unusual given a security’s recent trading history, such as (ie large or small volume or large % above or below last traded price), which should it execute, may impact orderly trading
• Additional orders entered at the same or different price as existing orders
• An order entered shortly after market open or instructed to execute close to or during the closing auction
• The security you’re trying to trade has been delisted

 

Outside of the common reasons for cancelled orders, a corporate action related to a particular security may also impact your ability to trade it. 

These corporate actions could include the security being subject to a stock split or takeover. The underlying price may have moved significantly, which may render your order invalid.

If your order won’t go through or has been cancelled/rejected and you believe none of the above reasons apply, please reach out to our customer support team and we’ll look into it.