A summary of the VSX Wine Stock Markets trading process.
- To buy or sell shares, an investor needs to place an order through a broker member who enters the price and volume of shares that their client wishes to buy or sell. Orders can be left open in Specter (VSX Markets’ trading platform) from 15 minutes up to 60 days, to await a corresponding order.
- Trades are automatically matched at the best bid/offer price already on the system. Once matched, a trade notification is sent to both the buying and selling broker, providing each firm with the details of their side of the trade and the details of the counterparty that they are required to settle against.
- Orders can be broken up in to blocks of shares that can be placed on to the order system at the same or at different prices.
- The visibility of orders can be withheld so that the order to buy or sell the next block of shares is not placed live on the system until the existing order has been matched.
- Orders to buy and sell can be added, modified or removed from the system at any point during market hours. However, once matched, the bargain is immediately sent for settlement between the brokers on behalf of their clients.
Rules regarding shorting of securities on VSX Markets
VSX has established rules that prohibit brokers from placing any offer to sell securities on the trading system, either under instruction from a client or as a principal position where the member does not hold sufficient levels of that particular security in their custody in the name of the seller for whom they are placing the order.
Settlement of trades
During the application process broker members advise the market of their settlement capabilities.
Brokers are then provided with access to specific segments of the trading system, appropriate to their trading capabilities and to their existing settlement accounts. This avoids trades being undertaken by a broker who would then be unable to settle through the necessary settlement facility.
Settlement takes place directly against the counterparty broker for each trade and as such VSX Stock Market charges no exchange fees for transactions. Settlement is made in T+3 days as the standard settlement agreed between brokers.
Access a demonstration version of the Specter trading platform.
Visit the ‘How to Join’ page for details of the requirements for joining and to download an application form.