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3.5.1 Orders in auction trading of securities are matched and executed based on the principle of price-time priority.
The principle of price priority: priority is given to a higher buy order over a lower buy order and a lower sell order is prioritized over a higher sell order.
The principle of time priority: The sequence of orders determines the priority of trading for aligned orders of same prices. The sequence of orders is based on when the Exchange trading system receives the orders.
3.5.2 The execution price in a call auction is determined according to the following principles:
(1) the price that generates the greatest trading volume;
(2) the price which allows all the buy orders with higher bid price and all the sell orders with lower offer price to be executed;
(3) the price which allows either buy side or sell side to have all the orders identical to such price to be executed.
In case there is more than one such price, the price that is closest to the previous closing price is taken as the execution price.
All the trades in a call auction are executed at a single price.
3.5.3 The execution price in a continuous trading is determined according to the following principles:
(1) where the highest bid price matches the lowest offer price, the deal is concluded at such price;
(2) where the bid price is higher than the lowest offer price currently available in the central order book, the deal is concluded at the lowest offer price;
(3) where the offer price is lower than the highest bid price currently available in the central order book, the deal is concluded at the highest bid price.
3.5.4 A trade is concluded after the orders are matched and executed by the Exchange trading system. A trade transacted under these Rules is effective as from its conclusion. Both the buyer and the seller shall accept the trading results and perform their obligations of clearing and settlement.
In case trading activities result in serious disorder due to force majeure, unexpected events or unauthorized access to the Exchange trading system, the Exchange is entitled to take appropriate measures in this regard or take such trades as null and void.
In case a trade is obviously unfair, the Exchange may react to it in appropriate manner, when considered necessary.
In case a trade contravenes these Rules and seriously disrupts an orderly securities market, the Exchange is entitled to declare cancellation of such trades. The loss incurred shall be borne by the trader committing relevant contravention.
3.5.5 The execution data recorded in the Exchange trading system shall be taken as the standard to determine the result of trades executed under these Rules.
3.5.6 Clearing and settlement between different Exchange members shall be handled by the registration and clearing institution designated by the Exchange. |
