Orders, Execution & Market Structure

A matching mechanism that collects orders over a window and executes them all at a single price that maximises traded quantity.

Equilibrium Price = the price at which the largest quantity can be matched; ties are broken by minimum unmatched quantity ₹

An automatic trading halt triggered when an index or a security moves beyond a preset percentage from a reference price.

Trigger: index movement of 10%, 15% or 20% from the previous close, with halt duration depending on the level and the time of day %

Orders, Execution & Market Structure

The entity that steps between buyer and seller after a trade, guaranteeing settlement to both sides.

Test: through novation the clearing corporation becomes buyer to every seller and seller to every buyer qualitative

Orders, Execution & Market Structure

A member of a clearing corporation that settles trades and posts margins, either for itself or on behalf of trading members.

Test: the firm holds clearing membership and is directly liable to the clearing corporation for settlement obligations qualitative

Orders, Execution & Market Structure

The practice of placing a trading firm's servers in the exchange's own data centre to minimise the time an order takes to arrive.

Test: the participant's matching-engine access is from within the exchange data centre rather than over a public network qualitative

Orders, Execution & Market Structure

An intraday order that must be placed together with a compulsory stop-loss, allowing the broker to grant higher leverage.

Test: entry and a mandatory stop-loss are submitted as one instruction; margin is computed from the distance between them qualitative