First published on the NIDO Russia Telegram channel.
The head of the Bank of Russia, Elvira Nabiullina, announced the resumption of OFZ trading on the stock section of the Moscow Exchange on Monday, March 21. Please read carefully to understand the new rules and limits if interested.
OFZ trading on the Moscow Exchange will be held on March 21 from 10:00 to 11:00 Moscow time in the discrete auction mode, then from 13:00 to 17:00 Moscow time in the usual mode, the Central Bank of the Russian Federation reported.
Discrete Auction Mechanics
The total time for one series is 30 minutes. Each consists of three discrete auctions lasting 10 minutes each.
During a discrete auction, limit orders are collected. Market orders are not accepted. You need to submit bids with prices. The security price is determined on the basis of submitted bids.
Limit order - you send an offer to the exchange that you are ready to buy (sell) securities no worse than such and such a price, and wait for someone to sell you securities (buy from you). Limit orders are valid for one trading day. In case of strong fluctuations in the market, a limit order may be more profitable than a market order.
Application conditions:
1) the number of bidders who submitted bids was at least three;
2) the value of aggregate demand (supply) exceeded the minimum value established by the decision of the Moscow Exchange;
3) the market spread for securities did not exceed 15%.
If all parameters are met, then requests are executed. After that, the next discrete auction in the series will begin. All bids previously submitted to the trading system and not canceled will participate in it again.
If during the discrete auction all conditions were not fully satisfied, then they will remain in the queue with the price indicated in the application.
