Compliance with trading rules
The trading rules of the Vienna Stock Exchange are designed, among other things, to counteract and prevent market abuse. Supervision of trading in listed securities is intended to ensure that all transactions comply with the rules of fair and proper trading. In this context, compliance with the trading rules of Wiener Börse AG pursuant to Article 18 para. 1 BörseG also have to be monitored.
Examples of trading rules
By way of example, two of the Vienna Stock Exchange trading rules are described in detail below:
(1) The entry of opposite trades by a single exchange member for the same security and which could lead to the execution of an order in the electronic trading system (cross trades) shall not be permitted, if the exchange member acts knowingly, or negligably in the case of algorithmic trading engines, on both the buy and the sell side for its own account or for the account of one and the same customer. Sentence 1 shall apply accordingly to any other behavior that effectively constitutes an intentional act to circumvent this rule. Cross trades in debt securities shall be permitted if these conform to the provisions of the Accepted Market Practices Regulation issued by the Austrian Financial Market Authority.
(1) Exchange members may enter the following types of orders into the trading system:
1. Limit orders: buy and sell orders entered with a price limit to be executed at that price limit or better.
2. Market orders: buy and sell orders entered without price limits are executed at the next price determined by the trading system.
(2) When they are entered, agent orders must be marked as agent orders (agent), nostro orders must be marked as nostro orders (proprietary) and market maker orders as market maker orders (designated sponsors), while orders of a liquidity provider trading in participation certificates and warrants in a continuous auction must be marked as orders of the liquidity provider (issuer), and include the following information:
- buy/sell price (bid/ask);
- security category;
- nominal value/number
The penal provisions for breaching the trading rules are laid down in Article 48 para. 1 no. 7 BörseG. Breaching a trading rule is an administrative offence and is subject to a fine of up to EUR 60 000.