Cancel on disconnect (COD)

Cancel on disconnect (COD) is an exchange or broker safeguard that cancels a session's resting orders when that session loses its connection involuntarily. On CME Globex it applies to iLink order-entry sessions, excludes good-till-cancelled and good-till-date orders, and is not triggered by a normal logout.

Senzoukria · Glossary · Updated September 2026

CME's mechanism

CME describes COD as monitoring the iLink system for involuntary lost connections between iLink users and CME Globex. When a lost connection is detected, it cancels all resting futures and options orders for the disconnected COD-enabled session, except GTC and GTD orders. Detection relies on heartbeats: if no message arrives within the heartbeat interval, a test request is sent, and if no response comes by the next interval the connection is treated as stale and closed. COD is not invoked for a graceful disconnect, a voluntary logout that completes the full procedure.

Whose connection counts

An iLink session is the connection between a firm's order-entry system and CME, such as the one operated by a broker or its technology vendor. A retail trader's platform connects to that vendor, not to CME. When your platform loses its link, CME's COD does not fire; whether anything is cancelled depends on the broker's or vendor's own policies. When the vendor's own session to CME fails, COD can cancel orders you never touched.

Worked example

A COD-enabled session holds three resting orders: a DAY limit buy, a DAY stop sell and a GTC limit sell. The session drops involuntarily. COD cancels the two DAY orders and leaves the GTC order working, so after reconnection the account holds one working order instead of three, and any position that relied on the stop is unprotected.

In Senzoukria

The stop and the target of a bracket placed from the application are two separate orders at the broker; the link that cancels one when the other fills is held by the application's order session. The confirmation says so: 'Stop and target placed. OCO is managed by this app while connected; keep it running.' If the order session ends while such a link is active, the application raises a notice: 'The order session ended while local OCO tracking was active. The app cannot maintain this link while disconnected; verify orders and positions at the original broker account.'

Common mistakes

  • Assuming that closing your platform cancels your orders at the exchange.
  • Assuming a disconnect left everything in place, when a COD may have removed DAY orders.
  • Relying on a platform-held OCO link while the platform is offline.

In the same section

Sources

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Frequently asked questions

Will my orders be cancelled if my internet drops?
Not by CME's COD, which watches the broker's or vendor's order-entry session, not your platform's link. Your resting orders usually stay at the broker unless its own policy cancels them; anything your platform manages locally, such as an OCO link, stops being managed.
Does COD cancel GTC orders?
No. CME's COD excludes good-till-cancelled and good-till-date orders; it cancels the other resting orders of the disconnected session.

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