The Colombo Stock Exchange has amended rule 1.4.4 of the Automated Trading Rules relating to the Disclosed quantity (Iceberg orders).

According to the amended rule; the Iceberg order size will be revealed as the disclosed quantity and not as the full order quantity and the Disclosed quantities must be greater than 10% of the order size.

Currently, the disclosed quantities are specified to be more than 25% of the order size.

The disclosed quantity will cause the executions to occur in blocks of disclosed quantity. When a block of disclosed quantity is executed the balance order loses its time priority.

When the total quantity for an incoming order is matched to an existing order in the order book, the incoming order’s disclosed quantity is ignored as it will not be visible to the market at the time of execution.

Orders with a specified disclosed quantity that appear in the order book, and hence have market visibility, will be executed in blocks of disclosed quantity in the manner specified above.

Orders with a disclosed quantity will be allowed in the pre-open session. Only the disclosed quantity will be considered for execution at the open auction.

Orders with a disclosed quantity can be submitted with GTD and GTC qualifiers.

In a stock exchange filling recently the CSE said that the Securities Exchange Commission of Sri Lanka has approved the said amendment.

The amended rule will be effective from Friday, 25^th October 2019.

The Automated Trading System (ATS) is designed to match buy and sell orders placed by the member firms of the CSE. Bid and Ask prices are entered into a central electronic order book.

During trading hours, orders are matched according to fixed rules and execution prices are set. Price and volume
details of all completed transactions are electronically communicated immediately to all the members involved.