Order priority on Tokyo stock exchange

Discussion in 'Order Execution' started by JamesJ, Mar 4, 2012.

  1. JamesJ

    JamesJ

    Can someone please elaborate on order priority on TSE?

    i thought it is time priority...

    but now i have a stock and a sell order for 250k pieces at 5 (currently 4/5, with volume around 60 mio/20 mio).
    And paid pürices are like 2000, 10000, and more at 5...
    but i get executed only on pieces, that is for example... when there was a 50k trade at 5 i got 1200 executed and so on...
    my order really is at TSE and not some ECN, and i do get executions, but it seems as if they do some kind of pro ratio execution...

    maybe this pro rata thing, holds for orders entered before market open?
     
  2. JamesJ

    JamesJ

    alright, after quite a bit of search I found the following:

    http://www.tse.or.jp/about/books/trading_methodology.pdf

    They have a pretty complicated way to allocate shares in the situation described above... (they treat orders entered before market open, as same time, and then allocate depending on market participants order size)...

    So it seems like there are around 50 participants with orders sitting in this specific security i try to sell...
     
  3. The problem is that if you place a large enough order you trigger an itayose auction and the regular time/price priority stops applying...

    During zaraba trading the priority is time/price.