Keytrade LuxembourgTrading rules
Trading rules: Brussels
IntroductionIt is only possible to deal on the First Market (Premier MarchŽ) (warrants and shares), which includes the forward market and the cash market. The forward market is reserved for the most liquid shares, and is divided into two segments (the continual market and semi-continual market), while the cash market addresses the smallest capitalisations, which are only quoted once a day (simple fixing) or twice a day (double fixing).
Opening times| Group Equities | Continuous Equities | Double fixing Equities | Continuous Warrants | Double fixing |
| Pre-opening | 07:15 | 07:15 | 07:15 | 07:15 |
| Fixing | 09:00 | 11:30 | 09:05 | 12:00 |
| Pre-opening(2) | 17:30 | 12:00 | ||
| Fixing(2) | 17:35 | 16:30 | 17:00 | |
| Session(2) | TAL (17:35-17:40) | |||
| Closing | 17:40 | 17:00 | 17:30 | 17:30 |
| Shut down | 17:40 | 17:00 | 17:30 | 17:30 |
For detailed market hours please visit euronext.
N.B. TAL = 'Trading At last Price'
Types of orders allowed- Market orders
A market order makes it possible to buy or sell shares immediately at the best price available on the market if the quantity of the counterparty is large enough. The non-executed part of a market order remains in the orderbook as a 'market order' (without a limit) and is executed at the price of any new incoming order at the opposite of the orderbook. However, the final price is not guaranteed, especially if there is high activity in the share in question.
Market orders are only accepted for the continual segment of the forward market (groups A0, A1, A2, A3, A4). They can be placed while the stock exchange session is "open" (see opening times).
When placing market orders, the "price" field should be left empty.
- Limit orders
A limit order is more precise than a market order. It makes it possible to set a limit both when buying and selling, but of course gives no guarantee concerning the execution of the order.
Limit orders can be placed both on the cash and forward markets.
When setting the price of a limit order, it is important to respect the following principle: The limit must be a multiple of 0.01 EUR.
Example: On 2/1/1999, the ABC share quotes at 207.30 EUR. If you want to place a buy or sale order, then the limit price you indicate will have to be, for example: 207.31, or 207.30 + 0.01.
- Stop orders
A stop order is a market price order, where you decide at which quote your order becomes a marketorder (Please note: This is therefore not an order limited to the specified stop price!)
As soon as the share price has reached or passed the specified stop price, your order will be transformed into a market order. There is a high probability of execution, but you have no guarantee on price. These orders are valid both when selling and buying.
Ex.: You bought a share at 100, that quotes at the moment 98. You wish to cover yourself against further loss. You place a stop sellorder with as stop 95. This means that if the share quote drops till 95, your order will be activated and becomes a marketorder that will be executed against marketprice.
We recommend great prudence when placing such orders, since the distance between the bid and ask prices can be very large, especially for small shares. It is important to bear in mind that the order will be executed at the market price, and will not be limited in any way.
- Open orders
An open order is placed when you want an execution at the opening of the stock exchange or at the fixing. (With this type of order you do not place a limit and you don't know before at what price your order will be executed.) You can enter this type of order when:
- the Brussels stock exchanges is still closed
- there is a period of pre-opening in case a share is suspended
- you place an order on the simple and double fixing before the fixing
- Stop limit orders
Stop Limit orders are similar to regular Stop orders in the way they are triggered. The difference is in the way they are executed: while a Stop order is launched "at market price" (and therefore does not allow any control over the execution price), a STOP Limit order is launched as a Limit order, the limit being determined when the order is placed. We recommend to use this type of order rather than a regular Stop order as it is safer in turbulent market conditions.
When placing a sell stop limit order, please keep in mind that your stop price and limit have to be below the BID price at the moment you place your order. When placing a buy stop limit order, your stop price and limit have to be above the ASK price at the moment you place your order.
Ex.: You bought a share at 100, that quotes at the moment 98. You wish to cover yourself against further loss. You place a stop limit sellorder. With as stop 95 and as limit 93. This means that if the share quote drops till 95, your order will be activated and becomes a sell limit order with 93 as limit.
- 'Iceberg' order
'Iceberg' orders allow the execution of high volume orders without displaying the total quantity of that order (to gain efficiency). 'Iceberg' orders need to be showing at least 10 times the minimum trading unit of the stock concerned.
This type of order is well adapted for illiquid stocks (low volume).
For instance, you can sell 10.000 shares by displaying only 1.000 at a time. Every time 1.000 pieces will be executed, another 1.000 will be displayed in the order book (you do, however, loose your priority if another seller comes and places a sell order at the same limit. This would not be the case if you would sell the 10.000 shares in one block).
'Iceberg' orders are only compatible with limit orders.
- 'ALL or NONE' orders (AON)
Euronext does not allow orders of the type ' All Or None' (AON) any more.
This order type is only available on the US markets.
In auction mode trading (fixing), the maximum allowed variation threshold at each fixing is 10% (as is the case for the New Market today), rather than the current 5%.
In continuous trading, static and dynamic thresholds will suspend execution of orders during in principle four minutes.
The static threshold is determined around the static reference price, which is normally the previous close price at the beginning of the day and the opening price after opening. The threshold is set at 10%.
The dynamic threshold will freeze the automated execution when a single order causes a deviation of more than 2% from the last traded price.
For secondary lines and warrants, no reservation thresholds will apply, the reference price will be adapted in accordance with the value of the underlying or reference shares. Only warning thresholds will apply.
Orders triggering a freeze will be partially executed up to the thresholds of 2% (dynamic) or 10% (static), as the case may be.
As dynamic and static thresholds are in place, no freezing will occur anymore due to the introduction of an order for a considerable amount.
If an order triggers a market suspension, it will be rejected unless it is a 'limit' or 'stop limit' order, in which case it will be sent back to the market until it is accepted. This feature is valid only for the Brussels' stock exchange.
Duration of the validity of ordersIt is possible to specify how long placed orders are to remain valid. There are two possibilities:
- Day: Your order will be valid for that day only. If it is not executed, it will be automatically cancelled. In case you entered a dayorder after closure of the stock exchange, your order will be valid the next trading day.
- GTC (Good Till Cancelled): Your order will be valid for 365 days.
The orders can be cancelled by you, the stock market or Keytrade Bank.
Only orders with validity 'Day' are accepted for the orders on STRIPS on Euronext Brussels. Consequently, if your order is carried out partially or not carried out at the end of the day, your order will not be automatically re-introduced the following day.
When a dayorder partially gets executed during a tradingday, the remaining part that has not been executed yet will be cancelled at the end of the day. If you want the remaining part to be traded, you will have to enter a new order for the remaining part. For this new order a transaction fee will be counted.
When placing a GTC order the remaining part of the order will still be valid on the market until it will be executed or cancelled. In this case you only pay one transaction fee, regardless the number of partial executions.
Orders can be cancelled either by you, by the exchange or by Keytrade Bank.
Remark 2:
If you wish to use the revenue of a sell, you must take into account the value date of the generated cash.
Value dates per market:
| Euronext (Brussels, Amsterdam, Paris) | D+3 |
| London stock exchange | D+3 |
| Milan | D+3 |
| Xetra (Franckfurt) | D+2 |
| Switzerland | D+3 |
| Madrid | D+3 |
| OMX (Helsinki, Stockholm, Copenhagen) | D+3 |
| US markets | D+3 |
| Canadian markets | D+3 |
| European options | D+1 |
| US options | D+1 |
| Funds | D+3 (the value date is stipulated by the issuer) |
| Bonds | D+3 |
| Currency exchange | D+2 |
