We will check this if required, but here is stating how things are
a. We cannot (as broker) decided which leg / order of the trade to send to exchange first and next. Brokers do not have right to do order matching or prioritising this, it has to happen on exchange.
b. Total alerts generated for hedge break happened with <0.3% users y’day, and these are all alerts for hedge breaking, everything put together, including the one we refer to.
c. We have observed platforms add a validation layer before orders sent to exchanges in their own middleware (for whatever reason they had) - we can’t do that. Only checks are in order and risk management systems (oms & rms), where only criteria set there for order execution and risk management has to be checked.
d. platforms like ours are pure execution platform. anything if we change here, makes it an algo and it requires certifications.
e. with respect to the new alerting system, the background is brokers were forced to bring the new system as result of regulations. Many brokers made representations for same to reconsider. we ended up refunding penalties (in lacs) for no reason - but just to comply with regulations.
f. we are actually raising alert as suggested by you - we can’t auto square off as well unless it meets the merits as per the risk management policy. again, broker cannot make a trade on behalf of user.
I will still have our teams to check if there can be any solutions for this. I completely get this from your perspective - and I really hoped regulations also considered these scenarios.