TACT - Opening Trading Phase
The Opening Trading Phase is the second of the TASE trading phases. During this phase, a call auction is carried out for each security separately. At its conclusion, each security’s price is set. This is the opening price, at which transactions based on orders submitted during the pre-opening phase are performed. This trading phase lasts just a few seconds. The opening price and turnover are calculated for each security separately, in a random order.
Calculation of the Opening Price and Turnover
The calculation of the opening price and turnover is carried out, one by one, for each security separately. The order of the securities for calculating the opening price is random and changes daily.
In determining the price and turnover, all the orders submitted prior to the beginning of the opening trade are taken into account. They are determined as follows:
- A security’s opening price is the price at which the cumulative supply and demand curves intersect, and at which the largest turnover is achieved.
- If maximum turnover is achieved at several prices, the opening price is set at the price closest to the base price, regardless of the trend.
- If no order is submitted to the security, the opening price is set as the base price, and the opening turnover is zero.
- If all of the orders submitted were supply orders only or demand orders only, the opening price is set as the base price, and the opening turnover is zero.
- If both supply and demand orders were submitted, but there is no price intersection, the opening price is set as the base price, and the opening turnover is zero.
||Order priorities are determined by the price limit (first priority) and by the time in which the order is received in the TACT system (second priority), as described below: |
- Buy orders that are limited with a high price receive priority over orders limited with a lower price.
- Sell orders that are limited with a low price receive priority over orders limited with a higher price.
- Orders with the same price limit receive priority according to the time of their arrival to TACT.
During the opening trade phase the orders are assigned in full, one by one, according to their priority. The last command may be only partially assigned.
Assignment of Orders during the Opening Trade Phase
After calculation of a security's opening price, all orders that can be executed at that price are assigned. Orders that can be executed during the opening phase are:
- Sell orders with a price limit lower than or equal to the opening price.
- Buy orders with a price limit higher than or equal to the opening price.
Due to the order priorities, some of the orders may not be executed: buy orders, even if their price limit is higher than the opening price or sell orders with a price limit lower than the set opening price.
Processing of Orders during the Opening Trade Phase
During the opening phase of a particular security, orders for that security cannot be added, changed or cancelled.
Processing of Orders that are not Executed, or are Partially Executed
In Limit (LMT) type orders that are not executed, or are partially executed, during the opening phase, the remaining part is automatically transferred to the continuous trading phase, at the original price limit and time priority. In Limit Opening (LMO) type orders that are not executed, or are partially executed, during the opening phase, the remaining part is cancelled and deleted from the books.
The opening trading phase is the second of the trading phases. The phases are:
Opening trading phase