NZX Trading Times

[ScrappyO]

The New Zealand Exchange (“NZX”) is making amendments to their trading hours. Currently they operate between 10:00am and 5:00pm with a random close between 4:55pm and 5:00pm. As at Friday 6 July 2007, the NZX will replace the random close with a pre-close period between 4:45pm and 5:00pm.

During the new pre-close phase, trading will stop and you will no longer be able to place trades at the market price. You will, however, still be able to place a Price Limit order online during this period.

Price Limit orders placed between 4:45pm and 5:00pm will determine the level of supply and demand for that share. The point at which supply and demand are equal will determine the share’s closing price when the market closes at 5:00pm. At this point, the trade request you made during pre-close will be compared or matched to the closing price, determining whether your trade will be processed wholly, partially or not at all. This procedure is called a “match off” and is similar to the current ASX closing process.

As a summary, the following daily timeline clarifies this new NZX trading process:


10:00am – NZX opens for trading.
4:45pm – Trading stops. Only Price Limit orders may be placed.
5:00pm – Market closes. Match off of Price Limit orders is undertaken

[777]

I have noticed that the ASX does this but is it also a recent thing for them. It is usually at 1610 that all the matched up trades go through by my observation.

I had been unaware of the NZX random close off. Goes to show how uninformed we are.

Thanks for the info.

[777]

This new process is obviously in place now. Tel buy bids higher than the sell bids at 4.55pm.

ScrappyO this topic probably should have been on the NZX page.

[ScrappyO]

quote:Originally posted by 777

ScrappyO this topic probably should have been on the NZX page.

I Agree 777