Competitive auction is held individually for each matched trade. The matching sequence and execution prices shall be determined based on each buy or sell orders entered, according to the following principles:
The validity of a trading order for the Central Bonds is limited to the day on which the order is received. Upon processing by the computer server at the TWSE, the results will be immediately reported back to the securities firm. All trading orders that remain unexecuted by the securities firm will be deemed invalid once the above reporting is made.
- Where the buy order price entered is higher than or equal to the lowest sell order price previously entered, the trading orders will be satisfied from the lowest to the highest sell order price. In cases where sell orders are placed at the same price, the trading orders will be satisfied in the order of the offer time until all orders are satisfied or the buy order price entered is lower than the sell order price of an unexecuted trade.
- When the sell order price entered is lower than or equal to the highest buy order price previously entered, the trading orders will be satisfied from the highest to the lowest buy order price. In case where buy orders are placed at the same prices, the trading orders will be satisfied in the order of offer time until all orders are satisfied or the sell order price entered is higher than the buy order price of an unexecuted trade.
The information to be reported in the preceding paragraph should include the code of the securities firm, serial number of the brokerage order ticket, type of order ticket, account number of the principal, type of the Central Bond, type of trade, unit price, volume, sale/purchase and time of transaction, provided the TWSE may as adjust the above items based on actual need.