Bucharest Stock Exchange (BVB) published the list of the companies listed on its regulated market, the shares of which will be traded using the auction model from 23 February 2015. The full list contains 24 issuers and is published on the website of the exchange, accessible at the following link.
The auction model consists in distinct sessions for introducing orders (without the registration of trades, even if the execution conditions are met), followed by sessions in which the fixing algorithm is applied and the trades are registered, if the execution conditions are fulfilled. The model is based on the concentration of orders at specific points in time during a trading session. The trading schedule used for the auction model by BVB will be the following:
09:30 to 12:15 Pre-opening
12:15 Opening (Fixing)
12:15 to 12:45 Trading-at-last
12:45 to 17:50 Pre-closing
17:50 Closing (Fixing)
17:50 to 18:00 Trading-at-last
18:00 Closing
The first session of trading-at-last will be based on the price determined through the fixing algorithm in the opening stage, with the execution of the trades taking place exclusively at the respective price (and likewise for the second session). When a price cannot be determined through the fixing algorithm in the first auction session, the ticker will remain in the pre-opening stage until the automatic move into the pre-closing stage.
Impact on investors: The auction model was launched by BVB as a solution to improve market quality and liquidity. According to the exchange, it facilitates the determination of trading prices, offering a structure that provides a balanced method for price discovery.