When Oracle 9.0.1 was first introduced, people wanted to use Automated Undo. It is a great feature and I use it in all of my 9i and 10g databases. However, if the application used a SET TRANSACTION USE ROLLBACK SEGMENT command, the command would raise an exception. In many cases, the application was difficult or impossible to change. Oracle Corp recognized this limitation and introduced the UNDO_SUPPRESS_ERRORS initialization parameter. The default value is FALSE. But if you set it to TRUE, then setting a rollback segment in your transaction will have the exception suppressed.
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