TRADING PRACTICES – THE PRICE QUOTED TO THE BROKER IS “SUBJECT” / “UNDER REFERENCE” OR “INDICATIVE”
THE PRICE QUOTED TO THE BROKER IS “SUBJECT” / “UNDER REFERENCE” OR “INDICATIVE”

“Subject”, “under reference”, and “indicative” price terminologies are interchangeably used by dealers. A “subject”, “under reference”, or “indicative” price is not a firm price.

The broker shall only broadcast posted (live) prices. Prices that are qualified as “Subject”, “Under Reference” or “Indicative” shall be maintained by the broker for information purposes only. The broker will only announce “subject”, “under reference”, or “indicative” prices if a dealer specifically requests for it.

An aggressor dealer may query to deal a price that is “subject,” “under reference” or “indicative” for a particular volume. The aggressor dealer should understand that the indicative price provider is under no obligation to deal on an indicative price. However, once an indicative price is made live on the terms of the query of the aggressor dealer, the aggressor dealer is committed to consummate the deal.