Transaction Rules OMX (Stockholm, Helsinki, Copenhagen)
Here are the opening hours of markets, the types of orders authorised under the markets, their validity periods, the trading hours. That is to say, all the information you need to invest better!
1° Opening times
The Stockholm market is open from 9.00 am till 5.25 pm CET (closing call 5.25 pm until 5.30 pm).
The Helsinki market is open from 9.00 am till 5.25 pm CET (closing call 5.25 pm until 5.30 pm).
The Copenhagen market is open from 9.00 am till 4.55 pm CET (closing call 4.55 pm until 5.00 pm).
The orders are sent to the stock exchange from 8 am onwards, but remain in "Wait" status until 9 am.
Day orders are cancelled after closing of the market, at 5.45 pm. Orders placed after 5.40 pm are sent to the exchange on the next trading day.
The Stockholm market quotes in SEK.
The Helsinki market quotes in EUR.
The Copenhagen market quotes in DKK.
3° Types of orders and quantities allowed
1. Market orders A market order makes allows to buy or sell securities at the best price available on the market. It gives no guarantee on the final execution price of the transaction (especially if there is high volatility). If you want to place a market order, do leave the "price" field empty.Market orders can only be entered during the opening hours of OMX. During the closing hours of the market, you must use a limit order.Remark : A market order on these markets is an IOC ( immediate-or-kill ) order. Your order will match directly with the best price on the other side of the order book. But if there is not enough volume at the best price, the remaining part of the order will be cancelled immediately.A market order on Nasdaq OMX will be executed based only on the available volume of the best bid or ask.What does this mean?If your market order’s volume is bigger than what is available in the order book on the best bid or ask, it will be only partially executed. The remaining part of the order will be cancelled by the stock market itself.The same logic applies to an automatic market order when a certain stop price has been reached in case of a stop order or a trailing stop order.Example:You are placing an order to buy 200 shares of a company listing on the Nasdaq OMX Stockholm. There are only 50 available at the best ask price. Consequently, your order will be executed partially (50 shares), the remaining 150 will be cancelled by the stock market itself.
2. Limit orders A limit order is more precise than a market order as you set a limit price a which you are ready to buy or sell. A limit order gives no guarantee as to execution of the order.
3. Trailing Stop orders When placing a trailing stop order, you specify a 'distance to market’, instead of a limit or stop price. If you are selling shares with a trailing stop order, your stop price will always follow the share’s last price upwards. The stop price can never go down. The initial reference price will be the current last price. Your stop price will then automatically follow the last price when it goes higher respecting the distance you specified. Your stop price is going to change intraday.For a trailing stop order on the buy side, your stop price follows the share’s last price downwards. The price can never go upwards. The initial reference price will be the current last price. Your stop price will then automatically follow the last price when it goes lower respecting the distance you specified. Your stop price is going to change intraday.Once the stop price is reached, a market order is automatically sent to the market. This order is valid until the end of the current day. Caution: for illiquid shares, you may receive a bad price or even no execution at all!An example of a sell order: A share quotes 100 euro. You place a trailing stop order to sell with a distance of 1. Your stop price is 99 euro. As long as the share does not fall to 99 euro, the sell order will not be activated. The stop price will follow the share price upward while keeping a distance of 1 euro. The stop price can never go down. When the price reaches a new high of 104 euro, the new stop price will be adjusted to 103 euro.An example of a purchase: A share quotes 50 euro. You place a trailing stop order to buy with a distance of 0.5. Your stop price is 50.5 euro. As long as the share does not rise to 50.5 euros, the order will not be activated. The stop price will follow the share price down while maintaining a distance of 0.5 euro. The stop price can never rise. When the price reaches a new low of 45 euro, the new stop price will be adjusted to 45.5 euro.During the continues phase on the market we will send a market order to the market when the stop price is reached, outside the continues faze we will send a limit order where the limit is the last traded price. (on Euronext this phase is known as the TAL period (Trading At Last)Trailing stop orders are not possible for warrants, turbo’s and other derivatives
4° Validity of orders
It is possible to determine the validity of your orders :
- Day: Your order will be valid for that day only. If it is not executed, it will be automatically cancelled. In case you entered a dayorder after closure of the stock exchange, your order will be valid the next trading day.
- GTC(Good Till Cancelled): Your order will be valid for 90 days. The orders can be cancelled by you, the stock market or Keytrade Bank.
When a day order gets executed partially, the remaining part of the order will be cancelled after market closing. If you want the remaining part to be executed as well, you will have to enter a new order, for which a full transaction fee will be debited.
When placing a GTC order, the remaining part of the order will remain valid on the market until complete execution or cancellation. You pay only one transaction fee, regardless the number of partial executions. Orders can be cancelled either by you, by the exchange or by Keytrade Bank.
Tick sizes of the market
Remark If you wish to use the revenue of a sell, you must take into account the value date of the generated cash.
Value dates per market:
Euronext (Brussels, Amsterdam, Paris)
London Stock Exchange
OMX (Helsinki, Stockholm, Copenhague)
D+3 (the value date is stipulated by the issuer)
Remark 2 If you enter a limit order, your limit may not diverge too much from the last price. If you don’t respect this rule, your order will be rejected. In the diagram below, you find the authorized deviation compared to the stock price.
|Stock price||authorized deviation|