Members are allowed to close price-setting transactions, negotiated deals and repo transactions. In addition, they can execute a take-over bid or obligatory take-over.

Price-setting transactions

A price-setting transaction is closed in the EBOS when an order to buy and an order to sell are matched. Members can close price-setting transactions in the following modules of the EBOS: 

Module of auction trading (trading at one price – fixing) is based on a batch processing of orders to buy and sell securities at a given moment. For each issue of securities that has been the object of at least one order, one auction price is calculated according to an algorithm and all transactions are closed at that price. The calculation algorithm ensures that a maximum number of securities are traded with a minimum overlap that is the difference between the total purchase and total sale.

Module of continuous trading allows closing transactions on the basis of orders to buy and sell securities, which are placed on a continuous basis. Received orders are prioritised according to their price and, subsequently, according to their time. If the price of the best order to buy is equal to or higher than the price of the best order to sell, the system will automatically close the transaction by matching these orders. The price of securities in one issue may vary in the course of continuous trading.

Module of market-maker trading is based on the function of market maker whose obligation is to quote, during the entire trading period, the sale price and purchase price of the given issue in which he is ‘making the market’, while having to follow the maximum spread set by the Stock Exchange. In this module, the numbers of securities are specified in ‘lots’, whereas in other modules the number of securities is specified in units. In the course of trading, quotations of market makers in the issues admitted to this module are permanently available, which allows buying or selling securities at any time during the trading period. Received quotations are prioritised according to their price and, subsequently, according to their time.

Module of block trading allows trading blocks of securities contained in one order, in which a minimum and maximum number of securities are specified. The orders to buy and sell securities are not matched automatically. Instead, they are matched by means of address orders. Members express their will to buy or sell securities by placing non-address orders, which the system ranks according to price, volume of order, and time of order indentation. Members can react to the most advantageous non-address order for a given number of securities by placing an address order, which will close the transaction. The price of securities in one issue may vary in the course of block trading.

If a price-setting transaction is closed in the module of auction trading or in the module of continuous trading, the parties to the trade are completely anonymous. In the market-maker module and in the module of block trading, however, it is allowed to quote on a non-anonymous basis or to place a non-address bearing a name.

Negotiated deals

In a negotiated deal, the price and volume are set beforehand through an agreement of the buying and selling member, with both parties knowing each other.

Repo transactions

Repo transaction is a sale of securities for cash with a concurrent agreement to repurchase the securities at a certain date in the future, and at a price set beforehand. Each repo transaction consists of a transfer of securities and a retransfer by which the securities of the same type and number are transferred to the account of the original owner. If there are obstacles to the return of a repo transaction, the participating sides can agree on a change of the date of return (i.e. prolongation or shortening) of repo transaction, a partial return of securities, or discontinuance of repo transaction.

Take-over bid

In compliance with the Act on Securities and Investment Services, legal and physical persons or persons acting in agreement are allowed/obligated to perform a bid/an obligatory bid to take over the company. The obligatory take-over bid applies to the above-mentioned persons whose share in the voting rights connected with the shares of one issuer of listed shares equals to or exceeds 33%, 50% and 66%. By means of price-setting and negotiated deals, the BSSE allows buying securities in the framework of a take-over bid/obligatory take-over bid.