How are Market Orders executed?
We will only submit your Market Order to the market (i.e. The Stock Exchange of Hong Kong (“SEHK”)) with one try only for auto-matching and execution by matching it up to 5 best price queues at SEHK (i.e. the prevailing best queue and up to the 5th queue at 4 spreads away at the time when the market order is processed by the Bank) and up to a maximum of 20 spreads from the prevailing nominal price (as the case may be). Any unfilled quantity of your market order as a result of the above mechanism will be automatically cancelled immediately. Examples (for illustration only): Customer has placed a market order to sell of 300,000 shares of Stock XYZ. Assume that the prevailing nominal price is HKD5 with price spread of HKD0.01. Under the condition that the Bank will match the market order up to a maximum of 20 spreads, the Bank will only execute the order when the price is HKD4.80 or above.
