New MSE Trading Rules and new version of the trading system
Wednesday, March 10, 2010
  
Macedonian Stock Exchange announces that starting from March 15, 2010 will start applying the new Trading Rules and will launch a new version of the trading system based on the FIX Protocol.
 
The Macedonian Stock Exchange in its continuous goal to maintain an efficient secondary market for the securities traded in the Republic of Macedonia introduces a new software version of the trading system, which contains more technical and functional innovations.
 
The new software version of the trading system uses the FIX PROTOCOL, which is a standardized protocol for exchanging packets of information used in a growing number of financial institutions and allows easy connection to other financial information systems. One of the main benefits of the implementation the FIX Protocol is that new channels for receiving orders from clients are introduced, meaning that the MSE members may receive and proceed an electronic orders from their clients.
 
The implementation of the new trading software resulted with certain changes in the MSE Trading Rules and in the way of functioning of the trading system. These changes are described as follows:
 
  • New criteria for scheduling the trading regime. According to the new rules, the determination of the trading schedule of the securities in the continuous and auction trading will be done on a periodic basis, rather than daily as it was in the past period, by taking into account the specific criteria related to the frequency of trading and the liquidity of the securities. The new concept abandons the principle of "minimum traded volume (MPK) in determination of the trading schedule and this principle is no longer a condition for establishing a new base price. According to the provisions of new Trading Rules, the base price from which the daily price limits of a certain security are calculated is the official average daily price on the last trading day when a transaction was concluded with that specific security.
 
  • As an addition to the current block transactions (reported trades), which are negotiated and executed outside the BEST trading system, the new system introduces the possibility of entering Negotiated (system) block orders that will made negotiated (system) block transactions. These new types of orders allows block trades in the BEST system for investors that wants to negotiate buy or sell orders for larger volume of certain securities actively thorough the BEST trading system.
 
  • New method for calculating the closing price under which the closing price will not be the price of the last transaction in the trading day, but it will be a weighted average price of transactions realized in the last 30 minutes before the close of the market. The closing price calculated according to this methodology will be more market reasonable, which is of a great importance to institutional investors who use the last price for the valuation of their portfolio. Also, the calculation of the closing price reduces the possibility of setting a targeted closing price in the last minutes of trading.
 
  • The new Trading Rules implements new trading schedule and modified duration of trading for the securities in the auction trading mode (in the past know as fixing trading regime). Also, the system of auction trading after closing the trading session for the particular auction enables additional trading phase, but only at the reached auction price after the auction and until the market closing.


     Macedonian Stock Exchange