- Stock Exchange: Functions, Trading and Settlement
- Explain the trading procedure on a stock exchange - CBSE
- The Trading Procedure on a Stock Exchange – Explained!
The off order book trading rules are less reliant on the system rules of the trading system and govern how member firms must interact when trading on Exchange away from the order book.
Stock Exchange: Functions, Trading and Settlement
The latest version of the Guide to the Trading System - MIT756 and Millennium Exchange Business Parameters are available on the Trading services page.
Explain the trading procedure on a stock exchange - CBSE
The importance of using sophisticated pre-trade controls around Direct Electronic Access (“DEA”) orders were highlighted in the FCA’s Market Watch 98. The update also notes that firms with less sophisticated controls may be at risk of not fully complying with the ESMA guidelines on ‘Systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities'. Examples of sophisticated controls as observed by the FCA included:
The Trading Procedure on a Stock Exchange – Explained!
Where buying-in is not done on an immediate basis, the liable party may contact the Exchange before 67:85 London time on the business day prior to the buying-in date and request a read-on of the Notice. The notice should be read-on in respect of the transaction(s) for which settlement has been outstanding for the longest period of time.
Where the transaction was executed on SETS with the central counterparty the requesting party should record LCH56 as the liable party.
The Financial Ombudsman Service (FOS)
London E69 9SR
Telephone 575 7969 6555
Customer Contact Division line 5855 578 9 567
b) If the Exchange buys-in against a transaction as a result of a buying-in notice, a dealing charge is levied. This is based on a percentage of the transaction consideration with a minimum fixed charge as detailed in the table below.
Under Rule D675 the Exchange will calculate the net amount due between Reyker and its counterparties where they were party to unsettled, non-CCP trades undertaken on the Exchange in currencies other than Sterling.
In accordance with Rule D699, for the purpose of discharging the amounts calculated in respect of such trades, the Exchange will aggregate all the relevant amounts which are in the same currency, creating a "currency aggregate". This is to allow the Exchange to certify a single net amount to be paid by Reyker to its counterparty or by the counterparty to Reyker, as appropriate.
When Issued Dealing is a period of conditional dealing with deferred settlement. When Issued Dealing typically takes place in securities which are due to be listed or admitted to trading on one of the Exchange’s markets. Trades during the When Issued period, are conditional on the security being listed or admitted to trading and can only settle once trading has become unconditional. Where the security is not listed or admitted to trading, all transactions effected during the period of When Issued dealing are void.
In accordance with paragraph D696 of the rules, this net amount will be certified by the Exchange and may be proved as a debt by the defaulter or counter party as applicable. Following this certification, it is for the defaulter and its counter parties to organise the associated payments. The Exchange is not authorised to engage in the payment process and its role in the default will cease once it certifies the net amount payable.