- Increasing cross order trade on the WSE two months since launch
- Growing share of cross order trade in total session trading
The Warsaw Stock Exchange introduced cross orders in April 2012. Cross orders enable Exchange Members to close intra-broker trades on the Exchange. Cross orders are an intermediate form between orders placed in session trading and orders for block trades.
Two months since the launch of cross orders on the WSE, Exchange Members increasingly close cross order trades. There were 2,153 trades closed in May 2012 with the aggregate value of PLN 1.55 billion (1,082 trades with a value of PLN 1.1 billion in April 2012). The vast majority of trade in April and May was in shares; however, cross orders are also increasingly used to trade in futures contracts.
The share of cross order trades in total session trading in different categories of instruments also increases. Cross order trades in shares and allotment certificates on the WSE’s Main Market represented 10.5 percent of total session trading in these instruments in May 2012 (8.5 percent in April 2012).
April 2012 |
May 2012 |
|||
Trading volume (PLN mn) |
# trades |
Trading volume (PLN mn) |
|
|
1 068,03 |
2 136 |
1 499,22 |
|
|
0,84 |
11 |
3,85 |
|
|
16,67 |
6 |
43,66 |
|
|
1,11 |
- |
- |
|
|
1 086,65 |
2 153 |
1 546,73 |
|
“According to our observations and statistics, cross order trade has been popular with Exchange Members since the launch. We are glad that the market participants appreciate and competently use the new functionalities consistently introduced by the WSE. This motivates us to implement further solutions necessary to develop a modern and competitive capital market in Warsaw,” said WSE CEO Ludwik Sobolewski.
Cross orders may be placed for all types of exchange-traded financial instruments without any limitation on the minimum trade value. A cross order trade is conditional on the price limit of the order fitting within the current market spread for the given financial instrument.