Trading and Orders

ETFplus is a multilateral, order-driven, fast and efficient electronic market, able to handle thousands of messages per second, assuring fast order entering and deletion and automatic contract performance execution. Its trading hours are as follows:

  • Opening Auction: from 9:00am  to 9:04 am plus a variable interval of up to 30 secs, determined automatically on a random basis by the trading system.
  • Continuous trading: from 9.04 am to 5.30pm
  • Closing auction: from 5.30pm to 5.35pm plus a variable interval of up to 30 secs, determined automatically on a random basis by the trading system.

Contracts are executed through automatic matching of bid and ask orders according to price/time priority criteria. An order represents a commitment to trade a financial instrument on the basis of specific price and quantity conditions, according to specific trading procedures set by Borsa Italiana.

The principals constituent elements of an order are:

  • Price: a multiple of the trading tick applicable to the instrument (please check the trading ticks for ETFplus at this link) which in some cases may not be indicated (see market orders).
  • Quantity: any quantity the investor wishes to purchase/sell.
  • Type of transaction: purchase or sale.
  • Manner of execution: the validity parameters that characterise the order according to its execution and validity period.

The two main types of orders are ‘price limit orders’ and ‘market orders’, also called ‘at-best orders’. The former may be executed only at prices equal to or better than the indicated limit. At-best orders, on the other hand, provide no price indication, and determine matching with one or more opposite proposals existing at the time of entering and until available quantities are exhausted. Proposals without price limits can be entered only in the presence of at least one opposite trading proposal with price limit. At-best orders always have higher execution priority than orders entered with price limit, and are not allowed during auction phase.

Orders with partially displayed quantities, called ‘iceberg orders’, may also be entered.
Pre-arrange trades can be entered in the platform, these orders are defined as “Cross and the Block Trade Facility”. For any details on Cross and BTF orders please see the following section.

Starting from July 11th 2016 Unpriced limit orders have been introduced in our ETFplus market. The unpriced limit order is an order with a price limit that is automatically determined on the basis of the best bids and offers displayed. More specifically, the price limit is equal to the best bid (offer) price present in the book at the time the order is entered, plus (minus) a trading tick. This type of order may only be entered during continuous trading, and will follow the same behavior provided for limit orders.

For more info, please have a look to the section dedicated to Millennium platform.

Orders on ETFplus are entered in anonymous form – with the exception of those entered by the specialist operator, who is always identifiable. Specialists support market liquidity using a specific type of order, the executable quote. This allows a purchase and a sale order to be entered simultaneously on the same financial instruments; the orders behave as two independent orders on the book.

Validity parameters

On the outcome of the order

  • IOC – immediate or cancel: in case of partial execution of the order, the unexecuted part is automatically deleted.
  • FOK – fill or kill: the order may be executed immediately and only in full. If the requested quantity is not available on the book, the order is deleted.

On time

  • Day: an order that, if not executed during the trading day, is automatically deleted at the end of the day.
  • GTD – good till day: an order that remains on the book until the day specified by the participant (up to 30 days).
  • GTT – good till time: an order that remains on the book until the day, the minute and the second specified by the participant (up to 30 days).
  • GFA – good for auction: an order which comes into force when the market enters an auction phase (for ETFplus this applies only to closing auctions).
  • ATC – at close: an order which is in force only during the closing auction.

For more info, please download the Service Manual for Trading on ETFplus market

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