Eligibility of a Member for Trading

1. Becoming the member of CSE Clearing House;
   
2. Obtaining Dealership / Brokerage License from SEC;
   
3. Not otherwise barred by CSE or SEC.
   

Trading period

Regular Trading schdule of Chittagong Stock Exchange

The system will have four basic sessions (the time mentioned below is Bangladesh Local Time, which is GMT+6):

Pre-Opening Session

Order entry, deletion/modification of limit orders is only permitted, execution of orders shall not be done during this session. The previous day’s closing price and index will be available to the dealers/brokers during this session.

Opening Session:

During this session Matching of orders shall be done at opening price. The opening price for the day based on the orders input during the previous session will be calculated by the System. The opening price of a security shall be the price at which maximum number of securities is matched.

In the event of there being no trade for certain securities, then the last closing price for the security shall be made the opening price for the day.

No order entry shall be permitted during this session.

Continuous Trading Session:

All types of orders will be accepted by the system during this period. Orders shall be executed during this session and if an order can not be executed in whole or in part, then it will be stored as an unfilled order.

Unfilled orders from the pre-opening session shall be carried forward with time stamp to this session.

Closing Session

No order is received in this session. Pending orders executable at closing price and orders ‘match at closing price’ shall be executed in this session. The closing price for a security shall be determined as per the weighted average price of all the trades in the last 30(thirty) minutes before the closing session. If there is no trade during the above specified time, the weighted average price of maximum 50 (fifty) number of trades preceding the above 30(thirty) minutes shall be taken for determination of closing price. If there has been no trade in the security during the continuous trading session the opening price of the security shall be treated as the closing price.

Close Price Trading Session

Only ‘match at closing price’ order and all executable pending orders shall be executed in this Session at closing price. If any ‘match at closing price’ order is not executed in whole or in part, it will be removed from the system automatically and all other pending orders except the expired ones shall be carried forward to the following Trading Day.

Post Closing Session

The trading members will make enquiries, verify, and down load the daily transaction details in this session.

Other Sessions

The system will also have sessions for Odd Lot , Spot and Auction sessions . These sessions however may take place simultaneously with the normal trading sessions . If brokers are interested to do trade in Odd Lot or are interested to see what stock is being sold and bought they will need to open the relevant windows only.

Order Types

Limit Order

A Limit Order is the order in which the buying price or selling price for a certain quantity of particular security is specified. Limit Order will be in the following categories.

Good Till Cancelled (GTC):

A GTC order is the order that remains in the system for a period not exceeding one calendar week or the member cancels it.

Good For Day (GFD):

A GFD is the order, which is valid for the day on which it is entered. If the order is not matched during the day, the order gets cancelled automatically at the end of the trading day.

Good Till Date (GTD):

A GTD order allows the member to specify the number of days not exceeding one calendar week for which the order shall stay in the stay in the system. At the end of this period the order shall be deleted from the system.

Market order

Market Order is an order to buy or sell a certain quantity of particular security at the best price or prices prevailing in the market at that point of time.

Market Orders will be in the following categories.

Full Fill or Kill (FOK):

A FOK order is the order that will match for a trade at the Market Price only if the total quantity is available.

Partial Fill Rest Kill (PFRK):

A PFRK order is the order that will match for a trade at the Market Price for the quantity available in the market. The balance quantity, if any, will be deleted from the system.

Partial Fill Rest Convert (PFRC):

A PFRC order is the order that will match for a trade at the market price for the quantity available in the market. The balance quantity, if any, will be converted to a Limit Order at the last traded price.

Minimum Fill:

An order in which the minimum quantity must be filled.

Market order protection

Market order protection is a protection, which will ensure that the trade price for market orders shall be within a certain price band (depending on the market order protection value). For a market buy order the market order protection value (which will be supplied by the member, when the market order is entered) will be relative to the BBO offer price and for a market sell order it would be relative to the BBO bid price.

Drip Feed Order

A Drip Feed Order is an order in which the member has the option to specify a replenish quantity along with the total order quantity. Only the replenish quantity is revealed to the market. The quantity gets replenished only when the previous quantity has got traded and every time the quantity gets replenished, the visible quantity gets a new time stamp.

Stop Loss Order

A Stop Loss Order allows the member to place an order, which gets activated only when the market price of the relevant security reaches or crosses trigger price.

A stop loss order can be modified or deleted until it is not converted to a limit order.

Match at Closing Price Order

A ‘Match at Closing Price’ Order allows the Member to specify order to be executed at Closing Price.

Spot Order

Members shall be allowed to carry out spot order on CSE system arising out of closure of book or closure of the renunciation period of listed Companies.

A spot order is traded against another spot order only.

Odd Lot Order

Any share quantity, which is not a market lot or multiple of market lots shall be called Odd Lot. While matching the system would match orders only if the quantity (odd) of the order is fully satisfied by one of the opposite order.

Bulk lot order

Bulk lot orders are multiple of market lot orders, which contain multiple number of certificates. Each of the Bulk lot order shall match with equal quantity and best price.

The minimum amount for a bid of bulk lot for a certain security shall be Tk 0.5 ( point five) million at market price unless otherwise fixed by the Board time to time with the approval of the SEC.

Big Lot Order

Big lots are multiple of market lots inscribed in one single certificate. Each of the big lot order shall match with equal quantity and equal or better price.

Auction Order

Auction Order shall be an order entered by CSE. The Exchange will specify a rate with price brand for each security when putting the auction order. The auction orders entered by CSE cannot be modified or deleted once the auction session has started.

At the end of auction session, allotment of bid/offer will be made by CSE at best price. All non- allotted orders are removed from the system at the end of the Auction Session.

All bid for Odd lot, Bulk lot and Big lot shall be entered in 02 system stating quantity and name of the security with price per share. The bid shall be accepted in the system during the continuous trading session only. The duration of these orders will be same as applicable for limit orders.

Order Modification or Cancellation

Amend Order

The price, volume, retention & client ID of an order can be changed prior to execution, or for any unexecuted portion of an order

Cancellation of Orders

Orders can be cancelled at any point prior to execution. All orders shall be automatically deleted from the system once their time condition has expired .

Order Matching

During the trading day the system will match orders with existing opposite type of orders which have the best price. Waiting orders are required to be matched in the following sequence:

i) Best Price
ii) Within Price, by time priority.

The best buy order will match with the best sell order. The best buy order for a seller is the one with highest price and the best sell order for a buyer is the one with lowest price. An order may match partially with another order resulting in multiple trades.

Suspension of Trading

The CEO in Committee of CSE will have the authority to suspend trading of specific securities, trading by specific members or permit the resumption of trading activities in the security by the member from the terminal. The matter however shall be informed to the SEC immediately within the trading day.

CSE 2000.