What is the ASX Anomalous Order Threshold (AOT)?

The ASX Anomalous Order Threshold (AOT) is a protective measure implemented by the Australian Securities Exchange (ASX) to identify unusual or abnormal trading activity. It sets a limit for order prices that significantly deviate from the current market price or normal trading conditions.

The AOT price is dynamic and updated continuously throughout the trading day. If an investor submits an order that breaches the AOT price, the order will be cancelled. The AOT helps detect potential market manipulation, irregular trading patterns, or actions that could harm the integrity of the market.

The ASX determines the specific parameters of the AOT, including the threshold level, to ensure effective monitoring of the market. By utilising the AOT, the ASX aims to maintain fairness, transparency, and protect against harmful or disruptive trading practices.

What should you do if your order is rejected due to ASX AOT rules?

• If your Limit Order was rejected, you can try placing a new order with a less aggressive limit price.

• If you attempted to place a Market Order, consider placing a Limit Order instead.