Equities
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16
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
During the time the market is open, orders may be
entered, modified or cancelled and traded at the price
matched according to the price-time priority of orders.
The closing price for the session shall be the avera-
ge of the price range available at the close.
Volatility auctions may occur during the time the
market is open, these occur when the upper or lower
limits of the price range are breached These auctions
last five minutes with a 30-second random end period.
Trading hours for the block market are the same as
for the general trading market, i.e. 9.00am to 5.35pm.
The special operations market opens once the ge-
neral trading market ends and runs until 8.00pm.
Types of order
The system allows limit, market to limit and market
orders. Limit orders are executed at a specified price or
better. Market to limit orders are orders without a price
which are limited to the best opposite-side price on the
order book. Market to limit orders are orders without a
price and which are traded at the best opposite-side price
on the order book and successive prices until they are
fully executed.
These orders can be carried out on a “Fill or Kill”
basis whereby orders are executed immediately and
completely, on a “Minimum Volume” basis whereby the
moment an order enters the market it must be executed
at the specified minimum amount or is rejected, and an
“All or None” basis which is a special type of minimum-
volume order where the said minimum volume is equal
to the total order.
Orders may be valid for one day, until a specific
date or up to a maximum of 90 calendar days.
Orders may be for an undisclosed volume. This
allows an order to be entered in the market showing
only a part of the volume to be traded. Once another
part of the volume is released, priority will be given to
the order price but not the time.
Finally, specialised intermediaries may use combi-
ned orders, i.e. the possibility of sending simultaneous
limit buy and sell orders, automatically and constantly
by external certified applications.
Block market:
ETF trading may be carried in blocks for all the
securities listed in that segment.
By means of these blocks all market members can
submit applications or close transactions with mini-
mum price and volume requirements.
Special operations
The special operations market is for communicating
authorised or communication trades which must meet
certain cash and price requirements.
In addition to Sociedad de Bolsas Circular 1/2001
for equities, which is also applicable for ETFs, this seg-
ment requires authorisation for special operations relating
to the subscription and redemption of holdings in listed
investment funds.
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