Background picture trading phases
​TACT – Pre-Closing Trading Phase

In the pre-closing trade phase, the fourth of the TASE trading phases, bid and ask orders for securities are quoted into the automated trading system, although transactions are not executed. These orders are added to others submitted in previous trading phases, which have not yet been executed.  The duration of this phase of trade is 9-11 minutes.
 

Processing of Orders Submitted in the Pre-Closing Phase
When an order reaches the TACT system, its validity is checked.  Orders containing errors and those that are not suitable for the trading phase are rejected and the submitter is notified.  Every valid order is recorded in the “order book” according to its priority and a confirmation is sent to the submitting party.
 
Only LMT (Limit) and ICE (Iceberg) orders may be submitted. Other types of orders will be rejected and notification in this regard will be conveyed to the member who submitted it.
 
Updating an order automatically cancels the original order.  The updated order will be given a new number and its priority will be determined according to the price limitation of the updated order, as well as the time when the update was made.

Parameters of the Pre-Closing Phase

  • Minimal size of the order – The minimal trading unit for securities in the stock exchange:
    • Stock – one share
    • Warrants – one trading unit of a warrant
    • Bonds, government short-term loans and convertible bonds – NIS 1 nominal value.
  • Maximum price fluctuation – The maximum price fluctuation during the pre-closing phase is unlimited.

Calculation and Publication of the Theoretical Price and the Theoretical Trading Turnover for Securities 

During the pre-closing phase, a price and trading turnover determined as if the closing auction and calculation of the closing price had taken place at the time of the calculation, is published separately for each security (hereafter: “theoretical closing auction price” and “theoretical closing auction turnover.”(
 
For each security, the system recalculates the theoretical closing auction price and turnover following each new quote in the trading system in addition to any cancellation or order update.

Indices

During the pre-closing phase, the theoretical indices (continuous trading indices) are not published, in contrast to the pre-opening phase.
  • The last index is published prior to the beginning of the pre-closing phase
  • The closing index is published at the end of the closing auction phase

Trading Phases

The pre-closing phase is the fourth of the trading phases. The phases are:
 
Pre-closing trading phase