Client Code Modification and Error Code Policy

Objective:

Client Code Modification is a massive problem of the organization. The main objective of the company to framed a policy for modification of client code for post trade execution and takes the report on such modification of client codes. Further educate the dealers and create awareness among them about this policy.

Brief criteria about Client Code Modification:

Client code modification means modification of client code after the execution of trade. The Commodities exchange provides a facility to modify the client code to rectify an error. Further only the genuine errors will be modify and after being transferred to ‘Error Account’. The Modification should be done within the Commodities Exchange guidelines. The Modification of client code is to be done only in exceptional cases and not in routine case. To Prevent misuse of the facility Commodities Exchanges levy penalty/fine for all non-institutional client code modifications.

Details about the Genuine Error:

The following trades shall be modified/allowed to be modify, shall be treated as genuine error and transferred to Error Account

  1. Punching error/typing error of client codes due to any genuine error or mistake in order entry, while punching the order, by any of dealer.
  2. Trade entered for wrong client due to any miscommunication from the client/authorized representative of the client.
  3. Client code/name and modified client code/name are similar to each other but such Modifications are not repetitive.
  4. Family code (Spouse, dependent parents, dependent children and HUF)
  5. Institutional trades modified to broker error/pro account.

Reporting System:

Client Code modification issues should be reported to the Key Personnel’s and can be done only after getting approval after knowing it’s genuinely as per exchange directives.

Any Client Code modification shall be subjected to this policy be carried at Head Office of the company.

The company review every day the Error Account file send by the Exchange.

A separate register to be maintained by the company for above purpose where full details will be recorded.