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I have the document the ASX produced which
describes the opening procedure and contains the formula used to determine
opening price. (when bid and offers overlap)
Email me off line if anyone wants a copy
Adam
Following on with this
topic which perhaps you or Sarah could answer.
At 12:51 10-08-00
+1200, you wrote:
So in this case the top bid would take
the top offer and continue down until
trading stops, when trading
stops whatever the price is at that point it
will charge all the
orders at that final price called the opening
match
price.
How is the match actually achieved
? Take a case where the bid is 20c and the offer 21c. One or other of
the parties has to change to achieve a sale. If both parties are on
reserve prices there can't be a match.
I think it is true to say the most
brokers prefer clients to be ' At Market' which obviously then gives the
broker the final say and of course the ability to effect the sale. But one
or other of the parties lose out, albeit by 1cent in this example. Is this a
question of give and take between brokers
?
BG
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See IRG research reports
