SSE adjusts market-closing trading mechanism
23 August 2018 Shanghai
Image: Shutterstock
To further maintain the price stability at the closing market stage, the Shanghai Stock Exchange (SSE) has adjusted the market-closing trading mechanism to adopt the call for the 3-minute market closing.
According to SSE, the call auction time of market closing is 14.57 to 15.00. An order is allowed during the call auction of market closing, but the withdrawal of the order is banned.
Quotation disclosure is the same with the call auction of market opening, SSE revealed.
However, the methods for forming the closing prices of bonds, bonds repo, funds, and other products are unchanged.
Further adjustments have been made in the resumption time after the trading suspension of securities.
When the suspension of trading lasts till 14:57 or later, the trading will resume at 14:57 and enter into the follow-up trading stage; with regard to the stipulation that "the in-session trading suspension lasts till 14:55”, the SSE revealed.
Meanwhile, in order to simplify the price control methods and to enhance investors’ order efficiency, the range of order price on the first day of shares’ listing has also been adjusted.
SSE said: “The valid order price shall be neither higher than 120 percent of the issuing price nor lower than 80 percent of the issuing price".
Additionally, the valid order price during the continuous auction, the call auction of market closing, and the trading suspension of the market opening has been adjusted to be “neither higher than 144 percent of the issuing price nor lower than 64 percent of the issuing price", SSE revealed.
The other three listing situations for shares has remained the same as before, and other price control methods on the first day of shares’ listing previously specified by the SSE are no longer applicable.
Order acceptance and order withdrawal are both permitted for trading-suspended shares during the market opening, and when trading is resumed, call auction will be adopted for the accepted orders to match trading at one time.
Next, the SSE will organise a market test on the above adjustments to guarantee the successful implementation of the adjustments to the market-closing trading mechanism.
According to SSE, the call auction time of market closing is 14.57 to 15.00. An order is allowed during the call auction of market closing, but the withdrawal of the order is banned.
Quotation disclosure is the same with the call auction of market opening, SSE revealed.
However, the methods for forming the closing prices of bonds, bonds repo, funds, and other products are unchanged.
Further adjustments have been made in the resumption time after the trading suspension of securities.
When the suspension of trading lasts till 14:57 or later, the trading will resume at 14:57 and enter into the follow-up trading stage; with regard to the stipulation that "the in-session trading suspension lasts till 14:55”, the SSE revealed.
Meanwhile, in order to simplify the price control methods and to enhance investors’ order efficiency, the range of order price on the first day of shares’ listing has also been adjusted.
SSE said: “The valid order price shall be neither higher than 120 percent of the issuing price nor lower than 80 percent of the issuing price".
Additionally, the valid order price during the continuous auction, the call auction of market closing, and the trading suspension of the market opening has been adjusted to be “neither higher than 144 percent of the issuing price nor lower than 64 percent of the issuing price", SSE revealed.
The other three listing situations for shares has remained the same as before, and other price control methods on the first day of shares’ listing previously specified by the SSE are no longer applicable.
Order acceptance and order withdrawal are both permitted for trading-suspended shares during the market opening, and when trading is resumed, call auction will be adopted for the accepted orders to match trading at one time.
Next, the SSE will organise a market test on the above adjustments to guarantee the successful implementation of the adjustments to the market-closing trading mechanism.
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