The rules governing the trading of all bonds remain unchanged since the introduction of Euronext’s Universal Trading Platform.
The most liquid securities are traded continuously throughout the day, while less liquid securities are traded at call auctions held twice daily, at 11.30 and 16.30 CET. Orders on the Marché Libre (Free Market) are matched once daily at 15.00 CET.
Whether securities are continuously traded or auctioned, issuers may call upon the services of a liquidity provider: a Euronext member who agrees to place a buy order and a sell order on the central order book with a minimum volume and a maximum bid/ask spread.
The market architecture is based on four systems working in synergy:
Orders are executed in order of price:
|Limit Order||- The buyer specifies a maximum price and the seller a minimum price|
- After partial execution ranked at the top of order book without price
|Market to Limit Order||
|Market on Opening Order||
|Stop Limit Order||- Becomes limit order when trigger price is reached|
|Stop Loss Market Order||- Becomes market order when trigger price is reached|
The Trade Confirmation System (TCS) enables Euronext to report trades executed off-order book. At the discretion of the participants, the clearing and settlement of such transactions can be handled automatically or manually. During trading hours, Euronext members can conclude off-order book transactions within Euronext regulated markets from the moment that the normal block amount is reached:
|Type of Debt Instrument||Normal Block Amount|
|Debt instrument traded continuously||€250,000|
|Debt instrument traded by auction||€100,000|
Note: Outside of trading hours, all Euronext listed securities may be traded off-order book without taking into account the normal block amount.