Pre-opening Session is a period for auction trading. Customers can place At-auction Order and Limit Order. Customers are allowed to cancel and change the order during pre-matching session.

2.Which type of orders can be placed during Pre-opening Session?
9:30-9:50 At-auction Order (sell only)
9:30-9:45 Limit Order

3.What is At-Auction Order?
At-auction Orders At-auction order is not available for a buy order. At-auction orders are only available on pre-opening session (9:30-9:50am) and closing auction session (4:00-4:10pm). Customers need to enter stock code and quantity only. Orders cannot be changed or cancelled for the period 9:45-9:50am and 4:08-4:10pm.An at-auction order enjoys a higher order matching priority than an at-auction limit order and will be matched in time priority at the final IEP. Any outstanding at-auction orders after the end of the Pre-opening Session will be cancelled before the commencement of the Continuous Trading Session. Any outstanding at-auction orders after the completion of the Closing Auction Session will be deleted at the end of the trading day.

4.What is Indicative Equilibrium Price (IEP)?
Indicative Equilibrium Price is the price at which the maximum number of shares can be traded if matching occurs at the Pre-opening Matching Session.
Demonstration 1:

Hence, $29.95 matched the most stocks in the above table. $29.95 will be considered as IEP.

Demonstration 2:
For example, we need to sell 100,000 shares during the pre-market auction.

Hence, $29.90 can match the most quantity, $29.90 will be considered as IEP.

Demonstration 3:
For example, we wish to buy 50,000 shares during the pre-market auction session

Hence, $29.95 can match the most quantity, $29.95 will be considered as IEP.

5.What are the order types permitted during continuous trading session?
(i) Limit
(ii) Special Limit

6.Limit Order
1. Clients can enter stock code, trading quantity and price during the pre and post continuous trading session (Pre-opening Session: 9:30-9:45 am and Closing Auction Session: 4:00 – 4:08 pm)
2. Limit order with a specified price at or more competitive than the final IEP (in case of buying, the specified price is equal to or higher than the final IEP, or in case of selling, the specified price is equal to or lower than the final IEP) may be matched at the final IEP subject to availability of eligible matching order on the opposite side. Any outstanding at-auction limit orders at the end of the Pre-opening Session will be carried forward to the Continuous Trading Session.
3. During normal session (10:00am – 12:30pm & 2:30pm – 4:00pm), Limit order allows matching of up to 5 price queues (i.e. the best price queue and up to the 5th queue at 4 spreads away) at a time provided that the traded price is not worse than the input price. The sell order input price cannot be made at a price of 5 spreads (or more) below the current bid price whereas the buy order input price cannot be made at a price of 5 spreads (or more) above the current ask price.
4. Any outstanding enhanced limit order will be treated as a limit order and put in the price queue of the input price.
Demonstration:

At stage 1, we can see that at price $30.05, there is 80,000 shares queued up already in the system. A client wishes to buy 450,000 shares at price $30.05, then by using Limit order, the client will have 80,000 shares executed, and 370,000 shares queue up in the system, shown as below at stage 2.

7.Special Limit Order:
1. Special Limit Order is only available on morning session (10:00am – 12:30pm) and afternoon session (2:30pm – 4::00pm). A special limit order will allow matching of up to 5 price queues (i.e. the best price queue and up to the 5th queue at 4 spreads away) at a time provided that the traded price is not worse than the input price. A special limit order has no restriction on the input price as long as the order input price is at or below the best bid price for a sell order or at or above the best ask price for a buy order.
2. Any outstanding special limit order will be cancelled and will not be stored in the AMS/3.

Demonstration 1:

By using special limit order, when client places a buy order for 450,000 shares at $30.15, the buy order will match with the sell order placed between $30.05 to $30.15 through the trading system and as a result, 310,000 shares are executed. Unlike enhanced limit order, the unexecuted order of 140,000 shares will be cancelled by the nature of special limit order.

Demonstration 2:

By using special limit order, when client places a buy order for 450,000 shares at $32, the buy order will match with the sell order placed between $30.05 to $30.25 (5 spreads) through the trading system and as a result, 420,000 shares are executed. Unlike enhanced limit order, the unexecuted order of 30,000 shares will be cancelled by the nature of special limit order.

8. Can I place special limit order in Pre-opening Session?
Yes, the order however will be set as pending and launched on continuous trading session.

9.Why are some orders rejected by system?
There are many reasons for orders to be rejected, including:
(a) buying power is not enough for purchasing amount;
(b) stock holding is not enough for settlement;
(c) required trading amount is not of a whole number of lot;
(d) purchase price of limit order set below 24 spreads away from market price;
(e) selling price of limit order set above 24 spreads away from market price;
(f) placing at-auction orders during continuous trading session;
(g) placing special limit order within closing auction session.

Further enquiry, please contact our customer service hotline (852) 2250 8288 for more information.