The trading of securities on a continuous basis involves the matching of all orders as they are handled by the electronic quote-driven trading system so that, as the case may be, an instantaneous price is established for each security.
DETERMINING QUOTATION METHODS FOR LISTED SECURITIES
Quotation methods for equities
The quotation method for each security is determined by the Casablanca Stock Exchange as a function of the following criteria :
| Average trading volume per session ;
Average number of securities traded per session ;
Frequency with which the security has traded ;
Average number of contracts recorded per session ;
The quotation method for securities is revised at least on a half-yearly basis and published in the Official Bulletin.
Please see Notice Number 167/08 for the criteria and terms adopted.
Any change in the quotation method for a transferable security is published in the Official Bulletin at least five business days before it takes effect.
Method for quotation of debt securities
Debt securities are quoted as a percentage of their nominal value and ex-coupon or as a monetary price on the decision of the Casablanca Stock Exchange. Due to the low liquidity of debt securities, they are traded by auction.
Method for quotation of secondary lines
The Casablanca Stock Exchange determines the quotation method for secondary lines as a function of their liquidity. A secondary line is defined as any security which is derived from any principal line of trading which constitutes a security of reference. Bonus and subscription rights are quoted by auction. The quotation methods for equities traded as secondary lines are determined on the same terms as for equities, described above.