Trading Rules & Regulations
Pre-Opening Session (08:30 - 9:00 am)
Order entry, deletion/modification of orders is only permitted. Executions of orders are not done during this session. The previous day’s closing price (last traded price) will be available to the brokers during this session.
Orders are faxed to Maldives Stock Exchange (MSE) from the dedicated fax line from the Dealing companies. These order will be received and time stamped. The orders will be entered to the order book on a Time and Price priority basis and the best quotes will be updated to the trading board.
Opening Session (9:00 am)
During this session Matching of orders are done at opening price. The opening price of a security will be the price at which the first trade for the day is executed with a matched order. In the event of there being no trade for certain securities, then the last closing (traded) price for the security shall be made the opening price for the day. No order entry will be permitted during this session.
Continuous Trading Session: (9:00 am – 12:00 pm)
Orders will be executed during this session and if an order cannot be executed then it will be stored as a pending order. Pending orders from the pre-opening session will be carried forward with time stamp to this session.
Closing Session (12: 00 – 12:30 pm)
No orders are received during this session. Pending orders executable at closing price and orders ‘match at closing price’ will be executed in this session. The closing price for a security will be the last traded price for the closing session. If there has been no trade of a security during the continuous trading session, the opening price of the security will be treated as the closing price.
Close Trading Session (12: 30 – 13:00 pm)
Only ‘match at closing price’ order and all executable pending orders will be executed in this Session at closing price. If any ‘match at closing price’ order is not executed, it will be removed from the MSE order book and all other pending orders except the expired (1 months) ones shall be carried forward to the following Trading Day.
Post Closing Session (13:00 – 14:00 pm)
The brokers will make enquiries, verify, and e-mail the daily transaction details and settlement schedules to MSE on Trade Day (T) by 14:00 pm.
Order Matching
During the trading day, MSE matches orders with existing opposite type of orders which have the best price. Pending orders are required to be matched in the following sequence:
- 1. Best Price
- 2. Within Price, by time priority.
The best buy order will match with the best sell order. The best buy order for a seller is the one with highest price and the best sell order for a buyer is the one with lowest price. An order may match partially with another order resulting in multiple trades.
Order Modification or Cancellation
The price, volume, retention & client ID of an order can be changed prior to execution, or for any unexecuted portion of an order. Amend orders will be accepted in writing and it will be time stamped and it will be entered to order book as a fresh order.
Suspension of Trading
The MSE may, for the protection of investors or for the conduct of orderly and fair Trading:
- 1. Cancel a trading session or defer or re-schedule the start of a trading session and advise all dealing companies of such a change;
- 2. Suspend a trading session if it considers that it is in the best interests of the market to do so.
The MSE shall suspend trading in an individual security if instructed to do so by the CMDA under the Act and may suspend trading in individual securities:
- 1. If requested to do so by a company;
- 2. Prior to a books close date for a sufficient period to ensure orderly trading and settlement can take place.
The CMDA will have the authority to suspend trading of specific securities, trading by specific broker or permit the resumption of trading activities in the security.
