DTR Accreditation

Under the ASIC Market Integrity Rules (Securities Markets ) 2017  Rule 2.5.2 trading participants must have at least one Designated Trading Representative (DTR). Only DTRs may submit trading messages, unless an automated order processing system is used.

Trading participants must ensure that each of its DTRs:

  • is a representative of the participant who has been authorised by the participant to submit trading messages to the trading platform on behalf of the participant
  • is suitably qualified and experienced
  • prior to submitting trading messages, has demonstrated to the trading participant knowledge of the rules and processes of trading and reporting on the trading platform and its relevant practices
  • does not trade for the DTR’s own benefit without prior written approval, and
  • does not intentionally take advantage of breakdowns or malfunctions in the trading platform or errors by the market operator.

The Stockbrokers and Financial Advisers Association National DTR Accreditation is designed in particular to help trading participants to satisfy the third criterion.

The authorisation and conduct of DTRs is regulated in part by the Australian Securities and Investments Commission (ASIC) via the market integrity rules (MIRs). DTRs must also comply with the Operating Rules and Procedures of the market whose trading platform they are submitting messages into.

This manual covers the key rules that are relevant to DTRs, as set out in:

  • ASIC Market Integrity Rules (Securities Markets) 2017;
  • ASX Operating Rules and Procedures, and
  • Chi-X Operating Rules and Procedures.

There are two National DTR Accreditations available:

  1. National DTR Cash Equities Accreditation (short name: DTR Cash Equities)
  2. National DTR Derivatives Accreditation (short name: DTR Derivatives)

Learning outcomes

The accreditation is comprised of two parts – a national DTR online examination (50 multiple choice questions/80% pass mark required. Candidates have 2 hours plus 15 minutes reading time to complete) and a one-on-one oral assessment conducted by a DTR Governor (who is also a member of the National DTR Working Group). All successful applicants will then have the opportunity to register for the National Register of DTR Operators, a searchable database held by the Stockbrokers And Financial Advisers Association which maintains the details of Nationally Accredited DTRs.

Each accreditation is made up of an Online Examination and a one-on-one assessment component known as the Oral DTR Governor’s Assessment. Senior members of the Stockbrokers And Financial Advisers Association’s National DTR Working Group, some of whom were former ASX Governors, conduct the Oral DTR Governor’s Assessments. There will be 2 Stockbrokers DTR Governors, as well as the Candidate and a Responsible Executive (RE) and/or Senior DTR from their firm at the oral assessment sessions. Skype (with visual) may be used.

Who should complete the accreditation?

The National DTR Accreditation is designed for individuals who are employed by a market participant as DTRs or who will be employed as such by their current employer, a market participant. It is not designed for others (eg advisers, compliance staff, management, DMA order originators) who are looking to gain a theoretical understanding of trading rules and protocol.

Enrolling candidates are to have at least 4 weeks on-the-job-training and/or work experience with a Senior DTR.

Is there any assumed pre-requisite knowledge?

Prior to attempting the DTR Derivatives assessment candidates must successfully complete DTR Cash Equities.

Please ensure that the course you intend to enrol in is one you are required to undertake and are committed to completing, as fees are non-refundable. Substitutes are welcome within the enrolment period.

How does the accreditation process work?

Accreditations are administered by the Stockbrokers and Financial Advisers Association (SAFAA). Enrolments close at 3.00pm every Monday Sydney time.

  • Candidate enrols online/registration is received.
  • Candidate receives Welcome email from SAFAA on Tuesday with accreditation information/study materials.
  • Candidate completes and returns ‘Exam Booking Form’ to schedule their exam day/time. This must be done at least 3 days prior to exam.
  • SAFAA releases exam/closes exam at designated day/time.
  • The Candidate’s approved Supervisor supervises exam and returns the ‘Declaration by Online Exam Supervisor’ to SAFAA. Results will not be released until SAFAA has received the completed ‘Declaration by Online Exam Supervisor’.
  • Candidate receives result (results are released within 1 working day). Candidate receives Certificate (Certificates are issued end of each month).

Assessment details

National DTR Cash Equities Accreditation (DTR Cash Equities)

Four (4) weeks on-the-job-training with a Senior DTR + 1 x Online Examination (80% pass mark required) + 1 x Oral DTR Governor’s Assessment (one-on-one assessment)

National DTR Derivatives Accreditation (DTR Derivatives)

Four (4) weeks on-the-job-training with a Senior DTR + 1 x Online Examination (80% pass mark required) + 1 x Oral DTR Governor’s Assessment (one-on-one assessment)

Note: Once candidates have successfully passed their online exam component, they are to contact the Stockbrokers and Financial Advisers Association on 02 8080 3200 or email dtr@stockbrokers.org.au to make arrangements for the oral assessment session.

Continuing Professional Development (CPD)

The DTR Accreditation program (Cash Equities) provides 10 FASEA CPD hours to candidates upon successful completion. The DTR Accreditation program (Derivatives) provides 10 FASEA CPD hours to candidates upon successful completion.

See breakdown for FASEA areas:

FASEA CPD Area DTR Accreditation program Cash Equities DTR Accreditation program Derivatives
Technical  competence 5 hours 5 hours
Regulatory compliance and consumer protection 5 hours 5 hours
Total Hours 10 hours 10 hours

 

Useful downloads

 

Supervisor Guidelines

SAFAA/WSU The College Exam Booking Form (to be completed and returned by candidate at least 2 days prior to them sitting their online exam)

Application for National DTR Operator Register Form

Enrolments close at 3.00pm every Monday Sydney time.