ASX makes changes to trading rules

[RichKid]

Interesting article, most of you who study financial markets or business would be aware of this as it was first discussed publicly a few years ago. Every trader on the ASX should check this out. Might make the markets fairer for us smaller investors; bad news for those who get inside tips from their long term brokers. But nothing is as clear as it seems, we'll see how it works in practice.

http://www.smh.com.au/news/Business...nefit-investors/2005/01/28/1106850108920.html

 

[Mofra]

Richkid,

Thanks for he post, interesting reading. Some subscription services offer a "who's buying & selling" section, I wonder if they will have any difficulty in providing this service in the future?

One point in the article I found confusing;

"Among other key changes, the ASX said the minimum price step on stocks priced from 50c to $2 would be cut to 0.5c from 1c."


I thought the minimum price step above 50c was always 1c, at least in the few years I've been trading.

Cheers,

Mofra

 

[RichKid]

Richkid,
Thanks for he post, interesting reading. Some subscription services offer a "who's buying & selling" section, I wonder if they will have any difficulty in providing this service in the future?
One point in the article I found confusing;
"Among other key changes, the ASX said the minimum price step on stocks priced from 50c to $2 would be cut to 0.5c from 1c."

I thought the minimum price step above 50c was always 1c, at least in the few years I've been trading.
Cheers,
Mofra

My pleasure, it is interesting, I'm sure there'll be more detail to come.

As for the price step. The release probably didn't phrase the statement clearly. What it means imo is:

If a stock is $1.70 for example if you wanted to sell it at the next step you can only sell at $1.71 (ie 1c step), with the change you'll be able to sell at 1.705c (ie a 0.5c step or half a cent).

So as another example depth would be $1.700, 1.705, 1.710, 1.715, 1.720 etc

I hope this is what the article meant, does it make sense?

 

[stefan]

The most important thing is that brokers no longer see what others are doing. That will certainly have a wide impact and it was an unfair advantage they had compared to joe average who had no idea about it. It will make it more difficult to manipulate prices but I'm sure the big boys will have another way to communicate certain things. Maybe we'll see small fires on roof tops soon

Happy trading

Stefan