Back Custom print Link Text Only Rich Text Print

  • Article (23)

    • Priority of Orders for Execution (Queue Priority)

      Orders that cannot be immediately executed are queued for future execution in a specific order, based on a queue priority. The factors used to determine the queue priority in order of consideration are:

      1- The Price:
      The price of an order determines its primary priority for execution. An order can be specified with a limit price or a market price. For both buy and sell, the higher priority price is defined as the better price, i.e. a buy order at a higher price will take priority over other buy orders at a lower price, and a sell order at a lower price will take priority over other sell orders at a higher price.

      A market order being queued at a limit price will be treated the same as if it had been entered as a Limit Order at that price.
      2- Source of Order Priorities:
      Sources of orders shall have the following priorities:
      a- First priority:
      (a) client order
      (b) foreign investor order
      (c) market control order
      b- Second priority:
      (a) mutual fund order
      (b) issuer order
      (c) professional
      c- Third Priority:
      (a) insider order
      3- Time of Entry:
      (i) The time of entry of an order governs its priority on a First-In First-Out (FIFO) basis. Orders entered into BATS are given a time stamp, noting their actual date and time of entry. At a ingle limit price, the earliest time of entry takes priority in the queue.
      (ii) If any portion of an order remains unfilled after the opening, its time priority will be based on the actual time of entry during Pre-Opening.
      (iii) An order that participates in a fill that does not entirely deplete the current disclosed volume (i.e. is partially traded), will retain its effective time of entry and its position in the queue.
      (iv) Changing the terms of an order may result in a new effective time stamp, and may change the relative priority position of the order in the queue. Whether or not a new time stamp is assigned depends on the nature of the change to the order. See the Alteration of Orders — Change Former Order (CFO) section.
      4- Cross priority:
      Is applied starting with the order of the highest queue priority on the side designated as aggressive. This order is traded first against orders from the other house, then against the same house order.
      5- Random Factor:
      In the event that two orders are received at exactly the same time, priority will be given using a random factor.