FAQs about market phases

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What are market phases and how do they affect trading?

Every day, the market goes through a number of different phases to allow for various activities, such as establishing opening prices and end of day processing.

How are opening and closing prices calculated?

The same algorithm is used to establish opening and closing prices, and prices for new listings and IPOs (Initial Public Offerings). The algorithm ensures that all trades at market open, market close, new listings or for IPOs take place at the same price, regardless of the original order price.

When are orders purged or cancelled?

Orders entered into ITS that have not been given an expiry date as set by the client or broker will remain in the system indefinitely. In certain circumstances orders will be purged by the ASX, this will occur for example after a corporate action, after a security has gone into suspend or if an order is too far from market.

How are orders prioritised?

There are strict regulations governing order priorities. Orders are queued and traded according to price-time priorities. Better-priced orders trade first. If there is more than one order at the same price, the order that was placed first has priority, except in the case of crossings.

What are condition codes?

There are a number of codes used by ITS to provide further information about the trading status of a security. These codes are known as status notes.