In accordance with the accepted standards in the world, starting today, it is possible to receive all trading orders in the order book (Market By Order).
The Stock Exchange launches a new information distribution service, which includes all the information available in the Market By Order data protocol (MBO). Today, the five highest price levels are distributed to the market at any given moment for each security. With the launch of the new service, capital market activists subscribing to the service will be able to see all the existing price levels in the market and their composition. The information service will be added to the existing distribution method today according to price levels.
The trading data currently distributed by the TASE includes the amount of orders submitted during the continuous phase at each of the five exchange rate levels that are the highest priority to execute, both in demand and supply (the “top five layers”). Reducing the minimum size of an order at the continuous stage in the stock market and virtually eliminating the minimum transaction fee, along with strengthening automated trading and other factors, led to the orders amounts displayed in the top five layers decreasing relative to the past.
The presentation of the full order book allows for greater transparency of all trading processes that affect the construction of the various price strata, similar to what is done in the world’s leading stock exchanges. In some exchanges this is the only protocol for disseminating information, and in most cases the two protocols (presentation by layers and presentation by orders) exist side by side. In this way, the stock exchange adapts itself to accepted international standards.
Providing the possibility of receiving all the orders contained in the book, requires support for the transfer of larger communication volumes than those currently existing and therefore the dissemination of information at this stage will be done through the infrastructure of the stock exchange complex or through the direct connection from the stock exchange’s server farms to London. This method of distribution will allow those interested in the information to consume it, without establishing communication and infrastructure costs over the other factors in the capital market.
According to the stock exchange, the launch of this service will facilitate the entry of foreign investors into the capital market, which operate with trading systems in accordance with similar protocols.