OREANDA-NEWS. Starting on 2 November, the Moscow Exchange will set new price ticks for certain securities at its quarterly review. This will affect the following trading modes:

  1. T+2 Central order book;
  2. Odd lots;
  3. Dark pools;
  4. Central order book for D Equities;
  5. Negotiated trading mode (NTM);
  6. NTM trade in D Equities;
  7. NTM trade with the CCP.

The move aims to improve the order book structure, in particular to boost trading activity, increase volume of bids/asks at the best order book prices and thereby reduce costs on filling large orders.

To determine the price tick, the security"s liquidity is taken into account in addition to its price. This allows the spread between the best bid and best ask to be narrowed, the time for orders to be filled at the best price to be reduced, and encourages investors to enter limit orders in the exchange order book. Improvement of the order book quality broadens the range of securities available for use with algorithmic strategies.

The price ticks are to be reviewed quarterly from the second quarter of 2015.

The price tick method employed by Moscow Exchange was adopted by the MICEX SE"s Equity & Bond Market Committee on 27 June 2014.