Syndicate
Constant Market (Electronic Or Screen Market)
The main reason for the constant market to exist (assisted by a computer) is to permit the contracting operations in a greater period of tine, making it possible for the financial intermediaries to execute the orders from their clients from any place.
The idea is to improve the diffusion of the information, to quicken the negotiations, to improve the efficiency of the market and to facilitate the connection with international markets.
It’s a market directed by orders, with a transparency on the information (its received in real time), and with an automatic contracting diffusion by ways of the computers of the market members.
The constant market has practically replaced in its totality the traditional system of negotiating shares but loud on the different stock exchange markets of the world.
Through personal computers, the operators can direct its orders to the central computer, where they are ordered according to the price and to the time that they were introduced. If there exists a prefixed counterpart price on the proposal, the order is executed automatically. If there is no counterpart, the order remains still waiting to be negotiated, with a temporary limit.
The order of execution of the shares is the following: first those with better price before that of lesser price and in case of equal prices, those introduced before into the system in front of those incorporated after.
The main consequences for the development of the constant market are:
The continuous contracting. The securities admitted can be traded during the entire journey.
In the traditional system of circular markets, this period is only of a few minutes per security.
Horary and norms of functioning directed to assure the equality of access. In this manner, the intermediaries and investors can be connected by computers with the system and receive information in real time.
The department in charge of supervision and central guarantees the equality of opportunities to all the operators.
An only price of each security within a same country with several different markets. Also, the prices in one session can’t vary less than the minimum or more than the maximum authorized by the regulating organism of the market.