01-18-2008, 05:20 PM
More about KATS.....
HOURS OF OPERATION
(a) The Exchange will have the following Hours of Operation for automated trading through KATS;
Session/State Time
Pre-Open 930 â 10.00
Open 1000
Continuous Trading 1000 â 1300, 1430 â 1700
Close 1700
(b) The Hours of Operation as stated in (a) above may be changed by the Exchange
with the approval of the Board.
ELIGIBILITY
The Exchange shall notify the companies that shall be eligible for trading on the KATS.
AVAILABILITY
(a) The Exchange will make available KATS to the Members by providing trading workstation connections. The number of trading workstations for each Member shall be decided by the Board.
(b) The Exchange may shutdown automated trading in the event that KATS is inoperative or inaccessible to more that such number of trading workstations as may be prescribed by the Board.
(c) If the Board of Directors is satisfied that the trading through KATS cannot be resumed within reasonable time then the Board may allow the trading in the Exchange on the conventional outcry system for such time as it deems fit.
QUEUE PRIORITY
(a) Orders that cannot be immediately executed shall be queued for future execution in a specific order of priority mainly based in the following order-
(i) Price
(ii) Time of entry
Any other factors affecting the order of queue priority shall be determined and notified by the Exchange with the prior approval of the Board.
(b) In case an order is executed partly, the remaining part of such Order shall not lose its priority.
(c) The Queue Priority shall be determined by KATS through an interactive process and the order of priority displayed by KATS shall be conclusive except in the case of manifest error which shall be determined by the Board.
INSERTION OF CLIENT'S CODE IN EVERY BID AND OFFER THROUGH KATS
(a) Every Member while inserting a bid and offer through KATS for each of his clients, shall insert unique Client Codes for those clients which are maintained by them in their back office system and registered with NCCPL. These Client Codes are
linked / mapped to UIN through the interface of National Clearing Company of Pakistan Limited. These Client Codes should not be re-assigned to another client of the member even after the closure of the account.
(b) Every Member shall ensure that the shares purchased or sold against a Client Code are posted to the respective Sub-Account / Investor Account of that particular client with CDC upon settlement of trades through the Exchange.
DISCLOSED AND UNDISCLOSED VOLUME
(a) An Order may specify the total share volume and may specify a lesser amount that is disclosed to the market. The disclosed volume shall not exceed the total volume.
(b) Total and disclosed volume of an order must be a marketable lot.
(c) An increase in Disclosed Volume will cause a new time stamps and change in Queue Priority but a decrease in Disclosed Volume will not cause a new time stamp or change in queue priority.
TIME IN FORCE RESTRICTION
(a) All orders shall be valid only for the relevant trading day unless a time restriction is specified otherwise in which case such order shall be automatically removed on the close of the day or after expiry of the specified time, as the case may be, if it remains unfilled till then..
(b) Terms allowed for Time in Force Restriction include;
(i) Day
(ii) Good Till Cancelled (GTC) (i.e. Open)
(iii) Good to Date (Month-Day-Year) (GTD)
(iv) Good for Week (GTW)
(v) Good for Month (GTM)
(vi) Fill or Kill (FOK)
CROSS TRADE
(a) A Cross Trade is allowed within the price range as stipulated in Clause (b) below.
(b) The price range is relative to the current best Buy and current best Sell at the time the Cross Trade is entered. The allowable price range for a Cross Trade is âatâ or âbetweenâ the market.
(c) A Cross Trade is not allowed if-
(i) prior to trade execution, the market has fluctuated and the Cross Trade Order price is no longer within the allowed price range;
(ii) there is a one-sided market or no market.
(d) Cross Trade shall not be entered during the pre-opening period.
(e) Cross Trade entered at or between the best markets shall not be subject to interference.
(f) A limit price must be specified for a Cross Trade.
CANCEL ORDER
A Cancel Order can only cancel an outstanding order and cannot cancel a trade completed
with the specified Order. It will not act as a Cancel Trade Request if that Order has already traded.
CHANGE FORMER ORDER (CFO)
(a) The terms of an Order posted to the KATS cannot be changed except by the Change Former Order (CFO) option.
(b) The options available for CFO shall be notified by the Exchange from time to time.
SETTLEMENT
The Settlement of the trading through KATS shall take place as per the existing rules and regulations of the Exchange as amended or substituted from time to time.
NEGOTIATED DEAL
(a) Negotiated Deal shall not participate in the open market but trade throughout the hours of operation of the Exchange and thereafter until a time set by the Exchange.
(b) Price protection procedures shall not apply to Negotiated Deals.
(c) Negotiated Deal shall have no minimum volume requirements.
(d) A Negotiated Deal will trade in its entirety as if it were an All or None (AON) transactional partial fills and Undisclosed Volumes shall not be allowed.
(e) Negotiated Deals will be between two separate houses otherwise the same shall be treated as Cross Trade.
(f) Negotiated Deal can be an Old Lot.
(g) All unconfirmed Negotiated Deals will be cancelled when the KATS engine is dumped.
SPECIAL TERMS ORDERS
(a) A Special Terms Order shall not be shown as part of the normal round lot order book but will be maintained in a Special Terms Order book that can be viewed separately from the round lot book.
(b) The options available for Special Terms Order shall be notified by the Exchange from time to time with the prior approval of the Board.
OPENING
(a) Order entered during the pre-opening period are queued and not executed at the time of entry. As each Order is queued (whether or not the company is expected to open) the price at which it is expected to open will be calculated through KATS.
(b) Where a market imbalance exists, an opening price will be chosen by KATS through an interactive process.
(c) Once the opening price is chosen, all trading shall take place at that single, opening price and no price level transition will be allowed.
(d) Opening Price Calculation The opening price shall be chosen as the price that will cause the greatest number of shares to trade at the open. If the same number of shares might be able to trade at differed price levels, the price level chosen will be the one which leaves the least number of shares remaining on one side or the other at the opening price level after the opening trading. If more that one price could have the same remaining balance, the price level is chosen that results in the least net change from the last trading dayâs closing price. If all this fails to pick a unique price level, the highest trade level of the remaining alternatives will be
chosen as the opening price.
(e) Orders not completely filled All orders entered during the pre-opening will have a time priority based on the actual time of entry. For orders not completely filled at the open, this time priority will be maintained thereafter during the trading day and for subsequent trading days. Orders carried over from previous trading days have
priority over orders entered during the pre-opening for the purpose of opening.
Limit orders entered during the pre-opening period are subject to the same procedures that govern their entry during the trading day.
(f) Frozen Trades The Exchange can define parameters that can cause any trade that violates them to be âfrozenâ so that it ca be examined before they decide to allow it or prevent it. This is bases on such things as a drastic change in the trade price or an extremely high volume. The monitoring that takes place during thetrading day is also in effect during the open. Any trade that violates freeze parameter at the open will result in a freeze. All the trading done for the open of
the current company is placed on hold until the Exchange decides how to proceed. Only the specific company is frozen.
HALTS
(a) Trading in each company can be halted on demand by the Exchange.
(b) A halt can be instituted for a company at any time during the trading day. Once halted, no further trading in the company will take place unless the halt is removed.
(c) All orders may be cancelled globally by the Exchange at discretion of the Exchange.
(d) Cancellation messages shall be forwarded to the traders.
(e) The Exchange may, in the interest of the market, put a halt on trading by any member under the KATS.
(f) Order entry or reinstatement may take place during the halt period.
GENERAL
(a) A member shall be responsible for all orders entered from his trading workstation(s).
(b) The Board may issue any guidelines and clarifications from time to time for removal of any difficulties in the execution or operation of these regulations.
(c) The terms and phrases used herein without a specific definition shall have the meaning in accordance with current trade practice.
(d) Any determination made by KATS through an interactive process shall be conclusive.
(e) Any dispute arising out of or in connection with the trade executed under these regulations shall, within two trading days of arising of such dispute, in the first place be referred to a committee constituted by the Board. Any part dissatisfied with the decision of the aforesaid committee may, within ten days of such decision, appeal to the Board.
(f) Notwithstanding anything contained in these regulations the Exchange may in its sole discretion cancel any order (before or after settlement) with the prior approval of the Board.
PENALTY
The Exchange, upon violation or non-compliance of any provision of these Regulations by a Member of the Exchange, shall impose penalties at its sole discretion, which may be financial i.e. maximum penalty of Rs. 500,000 and/or which may include suspension of trading upto a period of 3 months and on second or third violation suspension of trading may be extended to 1-2 yearsâ.
P.S. Thanks Kamran Bhai for your consideration. )
HOURS OF OPERATION
(a) The Exchange will have the following Hours of Operation for automated trading through KATS;
Session/State Time
Pre-Open 930 â 10.00
Open 1000
Continuous Trading 1000 â 1300, 1430 â 1700
Close 1700
(b) The Hours of Operation as stated in (a) above may be changed by the Exchange
with the approval of the Board.
ELIGIBILITY
The Exchange shall notify the companies that shall be eligible for trading on the KATS.
AVAILABILITY
(a) The Exchange will make available KATS to the Members by providing trading workstation connections. The number of trading workstations for each Member shall be decided by the Board.
(b) The Exchange may shutdown automated trading in the event that KATS is inoperative or inaccessible to more that such number of trading workstations as may be prescribed by the Board.
(c) If the Board of Directors is satisfied that the trading through KATS cannot be resumed within reasonable time then the Board may allow the trading in the Exchange on the conventional outcry system for such time as it deems fit.
QUEUE PRIORITY
(a) Orders that cannot be immediately executed shall be queued for future execution in a specific order of priority mainly based in the following order-
(i) Price
(ii) Time of entry
Any other factors affecting the order of queue priority shall be determined and notified by the Exchange with the prior approval of the Board.
(b) In case an order is executed partly, the remaining part of such Order shall not lose its priority.
(c) The Queue Priority shall be determined by KATS through an interactive process and the order of priority displayed by KATS shall be conclusive except in the case of manifest error which shall be determined by the Board.
INSERTION OF CLIENT'S CODE IN EVERY BID AND OFFER THROUGH KATS
(a) Every Member while inserting a bid and offer through KATS for each of his clients, shall insert unique Client Codes for those clients which are maintained by them in their back office system and registered with NCCPL. These Client Codes are
linked / mapped to UIN through the interface of National Clearing Company of Pakistan Limited. These Client Codes should not be re-assigned to another client of the member even after the closure of the account.
(b) Every Member shall ensure that the shares purchased or sold against a Client Code are posted to the respective Sub-Account / Investor Account of that particular client with CDC upon settlement of trades through the Exchange.
DISCLOSED AND UNDISCLOSED VOLUME
(a) An Order may specify the total share volume and may specify a lesser amount that is disclosed to the market. The disclosed volume shall not exceed the total volume.
(b) Total and disclosed volume of an order must be a marketable lot.
(c) An increase in Disclosed Volume will cause a new time stamps and change in Queue Priority but a decrease in Disclosed Volume will not cause a new time stamp or change in queue priority.
TIME IN FORCE RESTRICTION
(a) All orders shall be valid only for the relevant trading day unless a time restriction is specified otherwise in which case such order shall be automatically removed on the close of the day or after expiry of the specified time, as the case may be, if it remains unfilled till then..
(b) Terms allowed for Time in Force Restriction include;
(i) Day
(ii) Good Till Cancelled (GTC) (i.e. Open)
(iii) Good to Date (Month-Day-Year) (GTD)
(iv) Good for Week (GTW)
(v) Good for Month (GTM)
(vi) Fill or Kill (FOK)
CROSS TRADE
(a) A Cross Trade is allowed within the price range as stipulated in Clause (b) below.
(b) The price range is relative to the current best Buy and current best Sell at the time the Cross Trade is entered. The allowable price range for a Cross Trade is âatâ or âbetweenâ the market.
(c) A Cross Trade is not allowed if-
(i) prior to trade execution, the market has fluctuated and the Cross Trade Order price is no longer within the allowed price range;
(ii) there is a one-sided market or no market.
(d) Cross Trade shall not be entered during the pre-opening period.
(e) Cross Trade entered at or between the best markets shall not be subject to interference.
(f) A limit price must be specified for a Cross Trade.
CANCEL ORDER
A Cancel Order can only cancel an outstanding order and cannot cancel a trade completed
with the specified Order. It will not act as a Cancel Trade Request if that Order has already traded.
CHANGE FORMER ORDER (CFO)
(a) The terms of an Order posted to the KATS cannot be changed except by the Change Former Order (CFO) option.
(b) The options available for CFO shall be notified by the Exchange from time to time.
SETTLEMENT
The Settlement of the trading through KATS shall take place as per the existing rules and regulations of the Exchange as amended or substituted from time to time.
NEGOTIATED DEAL
(a) Negotiated Deal shall not participate in the open market but trade throughout the hours of operation of the Exchange and thereafter until a time set by the Exchange.
(b) Price protection procedures shall not apply to Negotiated Deals.
(c) Negotiated Deal shall have no minimum volume requirements.
(d) A Negotiated Deal will trade in its entirety as if it were an All or None (AON) transactional partial fills and Undisclosed Volumes shall not be allowed.
(e) Negotiated Deals will be between two separate houses otherwise the same shall be treated as Cross Trade.
(f) Negotiated Deal can be an Old Lot.
(g) All unconfirmed Negotiated Deals will be cancelled when the KATS engine is dumped.
SPECIAL TERMS ORDERS
(a) A Special Terms Order shall not be shown as part of the normal round lot order book but will be maintained in a Special Terms Order book that can be viewed separately from the round lot book.
(b) The options available for Special Terms Order shall be notified by the Exchange from time to time with the prior approval of the Board.
OPENING
(a) Order entered during the pre-opening period are queued and not executed at the time of entry. As each Order is queued (whether or not the company is expected to open) the price at which it is expected to open will be calculated through KATS.
(b) Where a market imbalance exists, an opening price will be chosen by KATS through an interactive process.
(c) Once the opening price is chosen, all trading shall take place at that single, opening price and no price level transition will be allowed.
(d) Opening Price Calculation The opening price shall be chosen as the price that will cause the greatest number of shares to trade at the open. If the same number of shares might be able to trade at differed price levels, the price level chosen will be the one which leaves the least number of shares remaining on one side or the other at the opening price level after the opening trading. If more that one price could have the same remaining balance, the price level is chosen that results in the least net change from the last trading dayâs closing price. If all this fails to pick a unique price level, the highest trade level of the remaining alternatives will be
chosen as the opening price.
(e) Orders not completely filled All orders entered during the pre-opening will have a time priority based on the actual time of entry. For orders not completely filled at the open, this time priority will be maintained thereafter during the trading day and for subsequent trading days. Orders carried over from previous trading days have
priority over orders entered during the pre-opening for the purpose of opening.
Limit orders entered during the pre-opening period are subject to the same procedures that govern their entry during the trading day.
(f) Frozen Trades The Exchange can define parameters that can cause any trade that violates them to be âfrozenâ so that it ca be examined before they decide to allow it or prevent it. This is bases on such things as a drastic change in the trade price or an extremely high volume. The monitoring that takes place during thetrading day is also in effect during the open. Any trade that violates freeze parameter at the open will result in a freeze. All the trading done for the open of
the current company is placed on hold until the Exchange decides how to proceed. Only the specific company is frozen.
HALTS
(a) Trading in each company can be halted on demand by the Exchange.
(b) A halt can be instituted for a company at any time during the trading day. Once halted, no further trading in the company will take place unless the halt is removed.
(c) All orders may be cancelled globally by the Exchange at discretion of the Exchange.
(d) Cancellation messages shall be forwarded to the traders.
(e) The Exchange may, in the interest of the market, put a halt on trading by any member under the KATS.
(f) Order entry or reinstatement may take place during the halt period.
GENERAL
(a) A member shall be responsible for all orders entered from his trading workstation(s).
(b) The Board may issue any guidelines and clarifications from time to time for removal of any difficulties in the execution or operation of these regulations.
(c) The terms and phrases used herein without a specific definition shall have the meaning in accordance with current trade practice.
(d) Any determination made by KATS through an interactive process shall be conclusive.
(e) Any dispute arising out of or in connection with the trade executed under these regulations shall, within two trading days of arising of such dispute, in the first place be referred to a committee constituted by the Board. Any part dissatisfied with the decision of the aforesaid committee may, within ten days of such decision, appeal to the Board.
(f) Notwithstanding anything contained in these regulations the Exchange may in its sole discretion cancel any order (before or after settlement) with the prior approval of the Board.
PENALTY
The Exchange, upon violation or non-compliance of any provision of these Regulations by a Member of the Exchange, shall impose penalties at its sole discretion, which may be financial i.e. maximum penalty of Rs. 500,000 and/or which may include suspension of trading upto a period of 3 months and on second or third violation suspension of trading may be extended to 1-2 yearsâ.
P.S. Thanks Kamran Bhai for your consideration. )
