Zagreb Stock Exchange replaced trading systems MOST and BTS with the modern NASDAQ OMX X-Stream trading system in November 2007.
Continous trading is carried out every trading day between 9:00 a.m. and 04:30 p.m. In exceptional cases, should a volatility interruption be initiated in respect of a particular instrument, trading time for that instrument only shall be extended until the end of the volatility interruption.
Continous trading consists of following phases:
Pre-opening takes place every trading day between 09:00 a.m. and 09:15 a.m., plus a variable ending which may take 5 minutes at most. Purpose of pre-opening is to establish the most realistic and representative (initial) price of a particular instrument for the trading day. During pre-opening session orders are entered but not matched. Matching occurs at the end of the pre-opening. Opening price calculation has three steps:
Main trading session takes place every trading day from the end of pre-opening phase, plus a variable ending which may take 5 minutes, untill 04:30 p.m. Orders which are not matched in the pre-opening phase remain in the trading system. After the main trading session begins, Member firms may continually enter new Orders or cancel or modify existing ones. In the course of the main trading session, any Orders which have been entered shall be continually compared by the Trading System and matched automatically whenever possible to result in transactions, according to their Order book sequence.AUCTION MODALITY
Auction Modality takes place every trading day between 11:00 a.m. and 01:00 p.m., plus a variable ending which may take 5 minutes at most, through a procedure of the same characteristics as the opening session. In exceptional cases, should a volatility interruption be initiated in respect of a particular instrument, trading time for that instrument only shall be extended until the end of the volatility interruption.
Auction Modality is intended for less liquid stocks. List of such stocks is published first Friday in every quarter.VOLATILITY INTERRUPTION
The volatility interruption mechanism will be triggered in the event of entry in the trading system of an order which, if matched, might result in the conclusion of one or more transactions that would exceed the permitted limit of price change.
The price at which Transactions are matched at the end of the volatility interruption mechanism is determined by the algorithm used to determine the price in the pre-opening phase.1. Volatility interruption in pre-opening phase
In the pre-opening phase, the previous day's closing price shall constitute the reference price for monitoring price movements in percentage terms.
In continuous trading, the previous day's closing price shall constitute the reference price for monitoring price movements in percentage terms.
The reference price may vary in the course of the trading day as a result of volatility interruptions.
The volatility interruption mechanism will be triggered in the event of entry in the trading system of an Order which, if filled, might result in one or more transactions which would exceed the permitted limit of price change.
The Order triggering the volatility interruption mechanism will be filled through transactions within the limit of price change, so a volatility interruption mechanism will be triggered automatically.
Orders may be:
1. Buy orders and
2. Sell orders.
With regard to the manner in which prices are set, the Order may be:
1. Limit order – Order with a specified price. The Order will be filled at the price specified in the Order or a better price.
2. Market order – Order without a specified price. The Order will be filled at the best price found in the Order book at the time. Market orders issued have a time limit on their validity, "immediate".
With regard to the time limit on its validity, the Order may be:
1. Day order – if not filled, the Order is valid until the end of the trading day on which it is issued.
2. Good until (date) – if not filled, the Order is valid until the end of the given date.
3. Good until (time) – if not filled, the Order is valid until the time specified on the given date.
4. Good until cancelled – if not filled, the Order is valid until it has been cancelled.
5. Immediate – the Order is cancelled unless it is filled immediately on being entered in the trading system.
Minimum fill quantity Order – Order with a specified quantity to be filled at once. The Order will not be filled until at least the minimum fill quantity specified in the Order has been executed. After the minimum fill quantity has been executed, the Order will be filled without restrictions.
By setting the minimum fill quantity, Immediate orders are further divided into:
1. FoK (Fill or Kill) orders – the minimum fill quantity is set to coincide with the quantity specified in the Order. The Order will be filled by executing the total quantity immediately if possible; otherwise, the whole Order will be deleted.
2. FaK (Fill and Kill) order – the minimum fill quantity is set at 0 (without limit). The Order will be filled immediately by executing the quantity which is immediately available, with the residual balance deleted.
Iceberg order – Order which contains two parameters related to the quantity of financial instruments:
– visible amount – the volume of financial instruments which is visible to other participants with access to the Order book,
– total amount – the volume of financial instruments which is not visible to other participants with access to the Order book.
On entering Iceberg orders, the visible amount must be equal to at least 10% of the total amount specified in the Order.
When the Iceberg order is filled partially, the Trading system will reduce the visible amount and when the visible amount is exhausted (drops to 0), it will be replenished automatically out of the total to reach the full visible or available amount.
Each time the exhausted visible amount is replenished from the total amount, the Order will be assigned a new time stamp.
The use of certain options and functionalities on entering orders in the trading system depends on the application software of the Member firm.
Public auction is a procedure conducted via the trading system in which a seller makes an offer under predefined terms to conclude a deal by which it acquires, assigns or transfers the title or some other right to the auction item or items, and auction participants compete amongst themselves to accept the offer according to the auction rules.
Block trades are concluded through an exchange of messages via the trading system. The minimum block value in respect of specific instruments is set by Exchange resolution.
OTC trades can be reported to the Exchange by the Exchange members and other institutional investors.