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3.6.1 During the auction trading of securities, orders are matched and executed based on the principles of price priority and time priority.
The principle of price priority: a priority is given to a higher buy order over a lower buy order and a priority is given to a lower sell order over a higher sell order.
The principle of time priority: for orders with the same bid price or offer price, a priority is given to the order placed earlier. The sequence of orders is based on the time the Exchange trading system accepts such orders.
3.6.2 The execution price in a call auction shall be 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 a higher bid price and all the sell orders with a lower offer price to be executed;
(3) the price which allows at least all the buy orders with identical price or all the sell orders with identical price to be executed.
In case there is more than one such price, the price that minimizes the unexecuted volume is taken as the execution price. In case there is more than one price that minimizes the unexecuted volume, the mean price is taken as the execution price.
All the trades in a call auction shall be executed at a single execution price.
3.6.3 The execution price in a continuous auction shall be determined according to the following principles:
(1) where the highest bid price matches the lowest offer price, such price shall be taken as the execution price;
(2) where the bid price is higher than the currently available lowest offer price, such lowest offer price shall be taken as the execution price;
(3) where the offer price is lower than the currently available highest bid price, such highest bid price shall be taken as the execution price.
3.6.4 In case an execution price determined according to execution principles falls outside the tick size, the execution price shall be rounded to the tick size.
3.6.5 A trade is concluded after a buy order and a sell order are matched and executed by the Exchange trading system. A trade that is transacted under the Trading 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 any trade results in severe consequences 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 deem such trade as null and void.
In case any trade is obviously unfair, after confirmation thereof and with the approval of the board of the Exchange, the Exchange may take appropriate measures to address the issue and report the matter to the CSRC.
In case any trade contravenes the Trading Rules and seriously disrupts the well functioning of the securities market, the Exchange is entitled to declare cancellation of such trade and any losses incurred there from shall be borne by the trader committing relevant contravention.
3.6.6 The execution data recorded in the Exchange trading system shall be taken as the final results of the trades executed under the Trading Rules.
3.6.7 Clearing and settlement of securities trades shall be conducted according to the regulations of the registration and clearing institution designated by the Exchange. |
