The Athens Stock Exchange
Trading Procedures
A.S.E trading hours are set between 10.30 a.m and 2.15 p.m (8.30-12.15 GMT) with a half hour pre-opening period.
A.S.E. members, namely brokerage firms which have obtained an approval from the Board of Directors of the A.S.E, are allowed to trade in the exchange.
All transactions are in cash, and they are performed on the exchange.
Shares Trading
Trades are regulated by the ASE and conducted electronically through the Integrated
Automated Exchange Trade System (OASIS). Orders are entered into the system
by stock exchange representatives, who are supplied with code numbers for that purpose.
Orders are entered either from the floor of the exchange or from the offices of the
members, by means of remote broking operations. Each member-brokerage firm is allowed to
have up to six terminal stations, the use of which is restricted to the trading hours of
the stock exchange.
All transactions introduced into the system before 10.30 a.m can
participate in the formation of the opening price. At the pre-opening period, the system
accepts limit and market orders. Limit orders determine the day’s opening price, while
market orders get time priority for execution soon after the opening of the market. If no
limit orders exist, the opening price will be the same as the previous closing price.
The criterion used for the determination of the opening price is the maximization of
transactions’ volume. When two prices produce the same maximum volume, the price closest
to the previous closing price is selected. If their differential from the previous close
coincides, the system will select the highest price of the two.
Closing prices are formulated as the mean average of the execution prices of the
transactions of the last ten minutes of the day.
Trade Execution
At the main trading session orders are matched by price (the buy order at the
highest price is matched with the sell order at the lowest price) and time. The
computerized system is capable of handling 200,000 orders per hour.
Members can change or reverse their orders during the main trading session if they feel
that their orders cannot be executed under the given price.
Trade Confirmation
All trades are continuously confirmed by print-outs, stating the exact order, the price at
which the transaction was effected, the precise time of the trade, the transaction volume
and the code number of the counterparty. Once an order is executed the transaction is
confirmed between the participating parties and is copied from the "scratch pad"
to the transactions list. This list displays the time at which the transaction was
executed as well as the code numbers of both the customer and the participating broker,
thus ensuring full transparency of the market.
Boards
In every particular market there are boards where stock trading depends on:
- Whether the trading volume of each share consists of round lot units or not
- The trading methods defined by the Athens Stock Exchange Board of Directors
- The type of initiated orders
The boards that are currently in use via the integrated automated exchange trade system (ÏÁSIS) are the following:
- Main Board
- Odd-Lot Board
- Agreed Price Board
Types of Orders Handled by the System
| Odd Lot Orders | They are introduced in amounts less than the lot unit of each share |
| Market Orders | If the counterparty cannot fully cover the order, the order is partially executed and the remaining part of the order is held by the system as a limit order with a price equal to the price of the last execution for this order |
| Limit Orders | They can be partially executed with the non executed part of the order queuing into the system for execution at the price limit |
The customer may set the period within which limit orders have to be executed:
Order Duration
- Good for today
- Good until canceled
- Valid until a specified date
- Good till executed - stop orders
Order Condition
- No Condition
- Stop orders
- Stop Limit
- Fill or Kill
- Immediate or Cancel
Repurchase Agreements
Repurchase agreements of the same date are allowed by the A.S.E Board of Directors, only
when one of the participating parties is a credit institution, insurance company, mutual
fund or investment company and the total value of the transaction exceeds GRD 200 million.
After Hours Trading
After hours trading is not allowed.
Trading Halts
Trading halts are imposed on rare occasions (i.e. investors interests are harmed,
electronic trading system break down, , threats for terrorist action e.t.c)) and on two
levels i.e. market and system level. There should always follow an ad hoc ASE
president’s decision.
Circuit Breakers
Circuit breakers are imposed on stocks in the form of daily share price limit. When their
price fluctuation on a particular day crosses the limit of 12 %,
in either direction. Price limits do not apply in the first three days of a company’s
listing.
Stock Lending and Borrowing
The practice of stock lending and borrowing has not been effected as yet, although
relevant Law provisions have already been introduced.
Identification Code Numbers
Domestic Codes:
Athens Stock Exchange uses two identification code numbers. The
first number consists of a three or four letter code and is used for internal checking of
the traded shares. When a company has both common and preferred shares listed on the
Exchange their type is also marked by an additional letter in their code. The second
identification code number is used for clearing purposes and consists of five digits.
International Codes:
Trading in Four Markets and Seven Methods
The system supports seven trading methods in the following four different markets:
All shares listed on
the Athens Stock Exchange bear International Standard Identification Numbers (ISIN)
issued by the Central Clearing Depository, in order to facilitate international
transactions.
1. Basic
2. Under supervision
3. Low liquidity
4. Forced Sales
Methods:
Block Trading
A block of shares may be transferred with a 5% price difference in either direction from
its current market value, when the total value of the block amounts to GRD 400-800 million. In trades over GRD 800 million, the price can be formulated with a 10% difference
in either direction from their last transaction price or from their closing price.
Furthermore, block trades can be effected free of any price limit in the following special
cases:
1. When the shares traded represent a percentage more than 30% of the total number of
shares of a particular category (i.e. preferred, common e.t.c.)
Trading Fees
Commissions
Insider Trading
Buybacks
Bonds Trading
Electronic Trading
On the practical side, the system evolves around the electronic trading system which is
already in use in Spain, and which ensures continuous operation 24 hours/day throughout
the year. It will handle fixed income securities both in physical and in dematerialised
form.
Banks also have access to the trading activity.
1. Automated and continuous trading
2. Automated and instantaneous trading (call auction)
3. Block trading
4. Transactions for the maintenance of dispersion during the entry of new shares.
5. Forced Sales
6. Block trading resulting from the articles 34 & 38 of the regulations of the
Electronic Trading System (buy in method)
7. Transactions for the maintenance of dispersion of shares already listed on the ASE.
Block trades are trades of a value greater than or equal to GRD 200 million
or the shares offered and asked must represent a percentage more or equal of 5% of the
share capital of the issuer. Block trades can be effected outside the
Automated Exchange Trade System, provided that there are no opposite bids or offers,
within the system, in values equal to or greater than the value of the respective
transaction.
2. In case of simultaneous transfer of shares of more than one category (i.e. preferred,
common e.t.c.) between the same parties, provided the percentage of the total shares
offered or asked, irrespective of the percentage per category of shares transferred,
exceeds or equals to the 30% of the share capital of the issuer.
3. Block trades of listed enterprises` shares, the majority of which owns the Hellenic
state, and which value is greater than GRD 50 bn or block trades of shares of listed
companies which total assets exceed GDR 500 bn.
4. Block trades, resulting to the sale of 10% of the total paid up share capital of a
listed company, and having a total market capitalisation of at least GRD 5 billion.
5. In case of transfers of share blocks in the context of IPOs or/and Private Placements
as long as it is regulated by an ad hoc ASE Board of Directors decision.
0.02% on the transaction value
Commissions were deregulated in 1995 and are now set freely by the trading parties.
Insider trading is strictly prohibited unless it is conducted by an authorised
public organisation or similar institution, for the purpose of exercising monetary and
foreign exchange policy or managing public debt.
Listed companies are allowed to buy back up to 10% of their outstanding shares in order to
support their price. The procedure must be disclosed to the public at least 10 days in
advance and has to be decided by the General Assembly of the Shareholders of the
respective company. Shares acquired through the buyback
procedure must be sold back to the market or be distributed to the existing shareholders
within three years from their purchase date or else are cancelled.
Bonds are being traded at prices free of any accrued interest. Their price is formed
according to supply and demand, while accrued interest is added at the end. Accrued
interest on bonds linked to foreign currencies is expressed in their respective currency
and is being calculated on the basis of the average fixing prices for the respective
foreign currency during the last two days prior to the ex-coupon date.
There is a daily barrier - namely 2% - set on the fluctuation of bond prices. The price may exceed this barrier only if the transaction
value exceeds 20 million drachmas.
Electronic trading became imperative due to the thin trading activity in the secondary
market, that was the result of the «open outcry» system. The market was developed on the
basis of Law 2533 which introduced provisions for the trading in the secondary market of
fixed income securities.
