Friday, January 28, 2022 - 02:54

Market model

Pricing of purchase and sale orders is determined according to the "call auction" rules, which provides for the fixing of the price at which the largest quantity of shares can be traded. In case this condition is not univocally met, the following rules are applied in sequence:

  • First rule: the theoretical auction price is the price at which the largest quantity of securities is tradable;
  • Second rule: at the same quantity tradable at different prices, it is the price that produces the least imbalance (quantity of unmatched securities with prices equal to or better than those at which contracts have been executed);
  • Third rule: with the same quantity tradable at different prices with identical imbalance, it is the price closest to the last reference price (if it exists);
  • Fourth rule: at parity of quantities tradable at different prices with identical imbalance and with prices equally far from the last reference price (if it exists), it is the higher price between the two equidistant ones.

The "Order Driven Equity" segment of the Market foresees the following phases and times:

Order entry phase:

  • From Monday to Thursday: from 9.00 to 17.30;
  • Friday: from 9.00 to 11.45.

Weekly auction phase:

  • Friday: from 11.46 to 12.00

If the weekly auction day corresponds to a holiday provided for in the trading calendar of the market segment, the auction phase is brought forward to the previous business day.

Orders can only be placed "at limited price".

Orders can be specified with the following methods of execution:

  • "valid only auction": the Order can be entered only on the auction day and is executed, even partially, for the quantities available and at the price indicated; any remaining balance is cancelled at the end of the auction;
  • "valid until the date": the Order is executed, even partially, for the quantities available and at the price indicated; any remaining balance remains on the book until its complete fulfilment, i.e. for a period not exceeding the date indicated and/or until revocation by the Order Flow Provider.

The Order placed with "valid until the date" must have as its validity date one auction day.

The orders placed keep the time priority and cannot be modified but only cancelled until the closing time of the auction. The execution of contracts for each financial instrument takes place, for the quantities available, following the time priority criterion determined by the time of entry.