Stock Price Formulation

How are simultaneous orders allocated to Trading Participants?

Update : Aug. 29, 2003

Answer :

As explained in 'What are simultaneous orders, and how are they distributed?' above, simultaneous orders are distributed among Trading Participants in proportion to each Trading Participant's aggregate orders. A specific example is given below.

What are simultaneous orders, and how are they distributed?

1. Let's assume that Trading Participants A, B, C and D have placed a number of buy orders at 500 yen prior to the setting of the opening price. The aggregate total volume of these orders is 24,300 shares.

Price	Total	Breakdown of bids
500	24,300	500	400	1,500	700	100	900	2,000	200	---
500	24,300	A	B	C	C	D	A	B	D	---

2. TSE then totals each Trading Participant's orders and ranks them according to size.

Price	Total	Breakdown of bids
500	24,300	10,200	8,700	5,000	400
500	24,300	A	B	C	D

3. As explained in 'How is order priority decided?' above shares are distributed to Trading Participants as follows:

How is order priority decided?

Price	Total	TP	A	B	C	D	Total
500	24,300	Shares	10,200	8,700	5,000	400	24,300
		step 1	100	100	100	100	400
		step 2	100	100	100	100	400
		step 3	100	100	100	100	400
		step 4	100	100	100	100	400
		step 5	100	100	100	-	300
		…

To explain, in a step each Trading Participant gets 100 shares (or 1 trading unit). This step is repeated.