Off Order Book

The Exchange System supports various forms of off order book trading. Transactions executed off order book during market hours must be reported to the exchange within three minutes of the trade taking place. Out of market hours, alternative rules apply. Special provisions apply to very large transactions and to portfolio trades. For further information see section 3 of the SWX Europe Rules.

Members have the following off order book functional features at their disposal. Details are described in Directive 4: Orders, Off-order Book Trades and their Attributes.

Trade Confirmation (TC)

A Trade Confirmation enables the member to report any transaction that has been executed off order book with another member. Clearing and settlement of such transactions can be handled automatically or manually. Trades flagged for automatic clearing & settlement (AU) will only be accepted during the clearing day. A TC is a double-sided report.

Reported Trades (RT)

For off order book transactions which a member concludes with a non-member, the member submits the related report by means of the Reported Trade functional feature. This feature may also be used if the TC cannot be used for technical reasons.

Statement of Interest (SOI)

The Statement of Interest function enables the trader to indicate to one or all other members that the trader would like to transact in a specific security. Thus prior to concluding a given transaction, the trader can post a non-binding offer in the marketplace. The trader is free to include further details in the SOI, such as size and/or a price indication.

Addressed Offer (AO)

An Addressed Offer represents a binding offer directed at a specific member. All other members remain uninformed of this offer until it is executed, in which case the trade is shown to all members via the "Trade Ticker" and "Trade History".

In contrast to a Statement of Interest, it is mandatory that an AO indicate the size of the order and price of the securities involved. The recipient of an Addressed Offer may then accept, reject or simply ignore the offer during its period of validity.

The "Addressed Offer" functional feature can also be used to respond to a Statement of Interest.

Post-Recorded Trade (PRT)

Every system in the electronic environment of SWX Europe can potentially malfunction, which in turn would impair trading or bring it to a complete standstill. For example, the Trading System, Exchange System or SWX Europe's network could experience a partial or total breakdown.

In the case of a Trading System breakdown, members are obligated to report as soon as possible after normal operation is restored all off-order book trades executed during the downtime. If that is impossible prior to the following day's opening, SWX Europe must be notified of that fact.

To assist in reporting such trades, a special functional feature (Post-Recorded Trade) is at the member's disposal. The procedure is the same as that used to report a normal two sided execution (Trade Confirmation): both parties enter the details of the transaction. The Trading System is configured so that the compiled trade confirmations are stored locally until the Exchange System signals its readiness to process them. Prior to post-reporting, SWX Europe must be contacted in order to initiate the Post-Recorded Trade procedure.

In emergency situations, each member may request that SWX Europe delete any open orders on the book. The member must then immediately provide SWX Europe with written acknowledgement (via fax or e-mail) of any such deletion.

For further information see Directive 7: Emergency Situations (System Failure).