Trading
Trading hours will change:
- Call auction procedures : The main fixings will occur at 10.30 and 16.00 for the double fixings (instead of 11.15 and 15.15); the single fixings will occur around 15.00 except for state bonds for which fixing will still occur at 14.30.
- Continuous trading : All continuous trading will start at 9.00. At 17.25., there will be 5 minutes pre-opening phase; the closing auction will take place around 17.30 and will be followed by a "trading at last" period until 17.40, during which trading will only be possible at the last traded price.
- The intervention period which preceded the opening fixing and during which all orders could only be improved, disappears.
- The semi-continuous segment disappeared on May 4. The companies listed on that segment migrated to either continuous trading or auction mode trading (fixing).
Three new types of orders will be available on the new platform. Cross orders will be handled differently.
- All-or-none order. This new type of order has to be either executed in full or is not executed. If not executed, it is queued in the orderbook. The « all-or-none » order will however have the lowest priority and will be executed only, if possible, after calculation of the opening price. Given its low priority, it is possible that an order at a lower price for a buy order or at a higher price for a sell order, can be executed prior to the "all-or-none" order. This type of order will not be available for the BEL20® values.
- Market order.The market order can be entered during the pre-opening or the continuous trading phase. The non-executed part of a market order remains in the orderbook as a market order (without a limit) and is executed at the price of any new incoming order at the opposite of the orderbook.
Former market orders are transformed into "Market to limit order" because they take the price limit of the auction price, when entered during the pre-opening phase, or the best bid or ask, when entered during the trading session.
- Stop order.There are two types of stop orders : "stop loss" and "stop limit" orders.
The stop loss order automatically generates a market order (this means : without a limit price for the execution of the order) when the trigger price set by the client is reached.
The stop limit order automatically generates a limit order (this means : with a limit price for the execution of the order) when the trigger price is reached.
- New rules will apply to cross orders. Cross orders are orders entered by a member who wants to execute simultaneously a buy and a sell order at the same price limit. Cross orders will have to be made within the best bid and offer or at the best bid or offer, but in that latter case, for a larger quantity than the one available in the orderbook at such bid or ask limit price. Moreover, no priority change will occur any more if in house matching is possible at the best bid or best offer price.
- In auction mode trading (fixing), the maximum allowed variation threshold at each fixing is 10% (as is the case for the New Market today), rather than the current 5%.
- In continuous trading, static and dynamic thresholds will suspend execution of orders during in principle four minutes.
- The static threshold is determined around the static reference price, which is normally the previous close price at the beginning of the day and the opening price after opening. The threshold is set at 10%.
The dynamic threshold will freeze the automated execution when a single order causes a deviation of more than 2% from the last traded price.
- For secondary lines and warrants, no reservation thresholds will apply, the reference price will be adapted in accordance with the value of the underlying or reference shares. Only warning thresholds will apply.
- Orders triggering a freeze will be partially executed up to the thresholds of 2% (dynamic) or 10% (static), as the case may be.
- As dynamic and static thresholds are in place, no freezing will occur anymore due to the introduction of an order for a considerable amount.
Trading on the New Market
Trading on the new market will no longer be different from trading on the other markets (continuous or fixing). The obligation of market makers to disseminate prices between fixings disappears. Euronext rules on block trade will also apply to off order book trading on this new market.
