1) Limit Orders
2) Market Orders
3) Market To Limit Orders
4) Imbalance Orders
5) Conditional Orders
7) Mid-Point Orders
8) Trades at VWAP
9) Odd lot Orders
10) Short Sell Orders
Orders in which price and quantity must be specified. If the trade is not executed in part or in whole at the time it is entered, the unexecuted part is placed among pending (passive) orders of the equity as per price and time priority ranking.
Orders in which only the quantity must be specified without price. These type of orders match with the best bid or ask on the order book up until order quantity is contained and the rest is deleted if there is no order left on the opposite side. Market orders placed in a call auction phase are kept on the book until the matching state, and are executed in the matching state. If the market order does not match, it is deleted and not transferred to the continuous trading session. Market orders are subject to specified maximum order value limit of each instrument. The limitis calculated with the ever-last price. In cases where no trade price is available, the last closing price is addressed, and if that is not available, any referance price is checked. Where none of the above exist, the system prevents the placing of a market order until a trade occurs.
Market to Limit Orders
Orders in which only the quantity must be specified without price and can only match with the best bid or ask on the order book. Remaining amounts from the execution are transformed into limit orders and placed in the order book with the execution price (given the time validity of the order is not fill and kill). Market to limit orders are subject to the specified maximum order value limit of each instrument. This value is calculated in the same manner with the market orders.
These orders can be employed to trade with the orders that are not matched at the auction price during price setting period at all call auction sessions including opening and closing. Unmatched imbalance orders are deleted.
For these type of orders, certain conditions may be defined for activation or execution of the order. There are four types of conditional orders:
a) Quantity Conditional order: Such orders are not executed where all of the quantity stated in the order at certain price level would not be matched fully. They would be executed only if all of the quantity stated in the order would be matched. An example for such type of orders: All or None (AON) orders Fill or Kill orders. (Will not be in effect at startup).
b) Price Conditional order: Such orders are activated or executed in the order book only if the current price of a stock or the best bid and offer price in the order book would reach the price level stipulated in the order as the condition for execution. (Will not be in effect at startup)
c) Time Conditional order: These orders are activated at a predefined part of the session or entered to be valid for a certain part of a session (for example, orders to be valid at open / at close). (Will not be in effect at startup)
d) Partial Display Conditional order: Limit orders may be entered with partial display condition. For these type of orders, when displayed quantity is executed, the predefined quantity in the hidden part would be exposed. The exposed part would be entered into the order book subject to price and time priority as if it is a new order. This process shall be repeated until matching of all of the order, expiry of the duration of the order or cancellation of the order.
Quotation is the statement of a price and quantity conveyed by the market maker member in the form of a bid and ask order. Quotations can be canceled as a whole or each side (buy/sell) can be canceled separately.
Mid-Point orders and trades
Mid-Point order is a type of order allowing matching of high quantity orders among themselves and providing lower transaction costs to the market participants, compared to the order book (lit order book) . Mid-point orders’values, as per the related regulation, are to be TRY 100.000 as the minimum and TRY 30 million as the maximum. However, such limitations would not be applied for the remaining part after the event of a partial match.
Orders are subject to automatic matching and priced as the arithmetic average of the best bid and best offer prices pending in the order book; these type of orders are traded in a separate and dark order book.
The quantity info is sent to the market after execution of the transaction, trading volume and value shall be included in the quantity and volume of the related stock.
Mid-point orders and trading shall be used only for the stocks included in BIST-30.
Trades at VWAP
A new order/ trading type also called as “Trade at Reference” (TAR) allowing trades at volume weighted average price (VWAP). It is planned to execute trades throughout the day taking the VWAP as the price which is to be discovered at the end of the day or at certain tick up / or down from such price for a stock.
In this manner, in addition to allowing realization of trades at VWAP to be established at the end of the day,
- There are options to trade throughout the day at VWAP or +/- min. and max. number of price ticks away from VWAP which is set by the Exchange for a particular stock.
- VWAP orders are traded on a different order book (e.g. ABCDE.AOF titled order book)
- Information about executed trades are not disseminated to market however trades are included in the daily bulletin.
Minimum quantity of VWAP (TAR) orders is 100,000 lots and the maximum is 3 million lots. The maximum amount in TRY may be set in addition to quantity limit (no limit on minimum TRY amount). In calculation of maximum amount in TRY, the latest trading price is used in the related stock. These values are parametric, and may be changed by stock or for the entire market with a prior notice.
Odd lot Orders
Odd lot trading is to be realized for quantities less than one unit for a stock. The trade shall be priced at the last trading price . For example, a trade of 0.3 unit executed for ABCDE.KE (odd lot) shall have the price of the last trade executed at ABCDE. (Will not be in effect at startup)
Short Sell Orders
A short sell order is the type of order given for the sale of unowned capital market instruments. The price limits for these type of orders, are determined by the CMB (Capital Markets Boards of Turkey) and exchange regulations.
When the Exchange members receive matching buy and sell ordersfor the capital market instruments traded in the Equity Market within predefined price and trade value (may be defined as quantity) limits, they are allowed to report such orders as executed among themselves without sending them to the order book as common orders. Such notifications will be converted into transactions after the required controls in the Exchange System shall be made and trade report notifications will be released thereafter. However, trade report will only be allowed within the limits which are set by the Exchange.
Trade reporting price limits are determined as two level.
a) First level: The minimum amount required for trade reporting is 3 million TL and the maximum amount is 30 million TL. Within this amount, trade reporting can be realized within ± 6% price limits over last trading price of the related share.
b) Second level: The minimum amount required for trade reporting is 30.000.001 TL and the maximum amount is 150 million TL. Within this amount, trade reporting can be realized within the ± 10% price limits over last trading price of the related share.
Two types of trade reports are supported by the system:
1. One sided trade report: is employed when the parties of the transaction are 2 different members. One of the members fill its side (buy or sell) with quantity, price, client information and names the opposite party. When the opposite party receives the trade report, it accepts and provides its side of client information to match the trade report.
2. Two-sided trade report: is employed when the buyer and seller is the same member and reports and crosses a trade by filling volume, price and client information for both buy and sell sides.
Fill and Kill (FaK)
This is an order validity type where the whole order in case of no match, or the remaining quantity in case of partial match is deleted automatically and not kept passive at the order book, at the instance of which the order is placed. (Will not be in effect at startup)
This is an order validity type where the order stays at the order book until the end of the day. In case of no match until the end of the day, the order will be deleted. In case of partial match, remaining unmatched quantity is kept in the order book until the end of the day and if there are any remaining quantity at the end of the day it will be deleted by the system.
Good Till Cancel
This order validity type is used in the primary market IPO’s with book building method (.HE).
Good Till Date
Orders that remain valid in the System until processed or canceled by specifying the deadline for validity. (Will not be in effect at startup)