Trading platform question stocks and bonds

rainmaker · 1 Trading platform question stocks and bonds Thu Mar 07, 2013 3:57 pm

rainmaker

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Maybe you guys know

Equity
Is the CSE trading system an "order driven system" or a "quote driven system" ?

I suspect it is order driven but it sometimes displays charateristics of a quote driven system...... Does it try to fill out large orders first before moving onto the next price?
What is the order allocation (oldest to newest)?

Bonds
Is the t-bill auction a strike price auction (everyone pays the same price) or a bid price (different parties pay different prices) auction?

I think it is bid price auction because they always mention the weighted yield in any given term.... but there is no explanation on allotment

Many thanks

sriranga · 2 Re: Trading platform question stocks and bonds Thu Mar 07, 2013 4:01 pm

sriranga

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Try these links.
http://www.cse.lk/pdf/ATS-RULES.pdf
&
http://www.cse.lk/pdf/Salient-Changes-of-the-ATS-Rules.pdf

rainmaker · 3 Re: Trading platform question stocks and bonds Thu Mar 07, 2013 4:18 pm

rainmaker

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Thanks for that !!! That's a gem of an article
Do they follow this in practice??

rainmaker · 4 Re: Trading platform question stocks and bonds Thu Mar 07, 2013 4:25 pm

rainmaker

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It looks like the opening price is based on volume maximisation..... so the open price is stable

After that there is:

1) A mixture of volume maximisation

2) Order balance

So at each price point try to maximise the volume of executed shares AND make sure that after the execution, the bids and ask are relatively equal