Trading modes
INTERNATIONAL PARTNERS
STATE AUTHORITIES
Trading modes

In accordance with the Rules of Government Securities Trading, trade participants are empowered to carry out two main types of transactions: "before redemption" (standard purchase and sale transactions settled on the day of the transaction) and REPO transactions "all against all" (purchase and sale transactions with the repurchase obligation). Only banks are authorized to carry out REPO transactions in government securities. Trades in this segment are carried out on one hundred percent pre-deposit principle. In addition, there is a primary government securities market which is governed by the special rules of the Ministry of Finance of the Republic of Belarus. The Ministry of Finance of the Republic of Belarus carries out primary auctions and additional placement of government securities in the form of closed price auctions on the principle of full or partial pre-deposit. The National Bank of the Republic of Belarus also carries out own auctions at the BCSE within the secondary government securities market under conditions of direct and/or reverse repurchase agreements, or under ordinary conditions.

 

Continuous double auction (Order-Driven Market) A trading mechanism of continuous matching of orders for buy and sell.  Trades are executed whenever the price of bids and asks is matched.
  • limit order kept in quotations (an order is kept in the trading system until its full fulfillment);
  • limit order non-kept in quotations (it is automatically rejected by the trading system in case it is impossible to fulfill this order. They can be divisible and indivisible.)

Participant offers to buy securities at not more, or to sell at not less, than a specific price.  Trading system verifies if there are unfulfilled orders in queue for selling/buying, the price of which is less/more or equal to the processed one. If there are such orders, a processed order is matched with the first order in queue until such orders come in or until it is completely satisfied.

  • at-the-close orders.
At-the-close order price is calculated as an average price of transactions with these securities concluded during continuous double auction.
S-T+0 - are carried out in the settlements and clearing system on the day of the transaction 

Discrete auction

Integration trading method when limit orders are collected over a (fixed) period. At the end of this time, the orders are processed in the auction at a common price that enables the largest number of orders to be executed.

·             limit order kept in quotations (an order is kept in the trading system until its full fulfillment);

Participant offers to buy securities at not more, or to sell at not less, than a specific price. Limit orders are satisfied if its price is matched with the common price of the auction. If the buy price is not equal to the sell price, buy orders with a higher price and sell orders at a lower price are executed first. If there are several orders at the same price, the one that was submitted earlier will be executed first.

At the end of call auction, all unsatisfied orders with S-T+0 settlements can participate in a continuous double auction.

S-T+0 - are carried out in the settlement and clearing system on the day of the transaction 

S-T+n - settlements are carried out in the settlement and clearing system within the established by parties period "n"

Forward transactions (Quote-Driven

Market)

transaction mode on the base of direct orders sent to a particular party or group of participants, implying the possibility of conducting transactions at a fixed by contractors execution term

·      orders to conduct S-T+n transactions;

·      orders to conduct NS transaction.

Orders are executed and transactions are concluded in the trading system when two counterbids are matched. If two or more opposing orders appear with the same entries, the one that was submitted earlier will be executed first. Orders included in the group are executed simultaneously if there is a group of counterbids.

S-T+n  - settlements are carried out in the settlement and clearing system within the established by parties period "n"

NS - settlements are carried out directly between parties

Simple Auction

Iterative trading method implying only one buyer - simple auction to buy, or only one seller - simple auction to sell 

- limit orders (an order to buy certain financial instruments at not more, or sell at not less, than a specific price);

- market orders (An order to buy or sell a stated amount (number) of securities indicated in the order).

 

Limit orders are executed at a stated in these orders prices, market orders are executed at the average weighted price calculated upon executed limited orders. The average weighted price is calculated by dividing the amount of all satisfied limited orders by total number of securities in these orders. If no limited order submitted to the trading system can be satisfied fully or partially during a standard simple auction, no matter whether the starting price was announced or not, the simple auction is announced as failed. The simple auction is announced as failed if the buy or sell volume is less than stated by the auction parameters.

S-T+0 - are carried out in the settlement and clearing system on the day of the transaction 

S-T+n - settlements are carried out in the settlement and clearing system within the established by parties period "n"

S-REPO - first REPO transaction part settlements are carried out in the settlement and clearing system on the day of its conclusion, second REPO transaction part settlements are carried out within the period established during its conclusion

NS - settlements are carried out directly between parties

REPO (free pricing)

Mechanism of REPO transactions conclusion when the price of a financial instrument for the first part of the transaction as well as REPO rate are subject to trade. It is the base to determine the price of redemption (repurchase), the object of these transactions can be a specific security only

Participant offers to buy (sell) securities on T+0 basis (T- a day of submitting an order) in the amount and at the price specified in the order (the first REPO part), and repurchase of the same number of securities (the second REPO part) on T + n basis (T - the date of submitting an order, n - number of calendar days specified in the order under " repurchase agreements term"). Orders are executed and transactions are concluded in the trading system when two counterbids are matched. If there are two or more counterbids with the same entries, the one that was submitted earlier will be executed first. Orders included in the group are executed simultaneously if there is a group of counterbids.

S-REPO - first REPO transaction part settlements are carried out in the settlement and clearing system on the day of its conclusion, second REPO transaction part settlements are carried out within the period established during its conclusion

Professional assistance:

Operational Department 

mail:  48a, Surganova str., Minsk, 220013 BELARUS

Tel. 375 (17) 306 34 63

e-mail: grevtsov@bcse.by