Boerse_Berlin_Equiduct

MarketModel 21Trading and Price Determination on Equiduct All orders and quotes are entered into the order book. Trading starts with an opening which is followed by continuous trading. Market Makers post continuous quotes. Other participants, known as Order Flow Providers, post orders. The system automatically matches the orders, aggressive orders which are immediately executable are matched on receipt by the system. Orders or partial orders which are not immediately executed rest in the order book. These resting orders (or the visible part with regard to iceberg orders) are visible alongside the Market Maker quotes. PartnerEx is a service designed to deliver best execution to the retail market. Therefore order flow providers can only utilise this service to execute retail flow. PartnerEx orders operate within the order book with specific features. They therefore behave in the same way as every other order and are visible in the same way. They have a number of additional characteristics, e. g.: • The system continuously calculates the VBBO (Volume Weighted Best Bid and Offer) for each instrument • An order received which is immediately executable against the VBBO will be executed at that price without the intervention of the Liquidity Provider • The counterparty will be one or more of the Liquidity Providers in the system • With regard to PartnerEx orders, the Liquidity Provider is not fulfilling a Market Maker role according to MiFID since the Liquidity Provider has to trade on the VBBO set by the exchange • The Liquidity Provider is obliged by the rules of BSX to execute PartnerEx orders at prices calculated by the system • If an order is not immediately executable (e. g. the VBBO is currently not within the limit) it will rest in the order book as any other order. ClearingMonitoringMarketModel

Boerse_Berlin_Equiduct

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