Market Model

All transactions on the Free Markets are cash settled, i.e. the buyer must pay the funds and the seller must deliver the equities once an order has been executed. Trading and market data dissemination are handled by the trading systems of NYSE Euronext. Clearing and settlement are carried out, where appropriate, through the systems of LCH.Clearnet SA, the CIK and/or Euroclear Bank. NYSE Euronext reserves the right to take any action necessary for the orderly operation of the Free Market, including a modification of trading hours, or a temporary or permanent trading suspension in any equities for which it deems such action to be necessary.

The rules for determining the prices of financial instruments are as follows:

  • Trades are executed per share or unit.
  • As a rule, trades are executed through a single auction per session.
  • Order matching takes place at 15:00 CET for the main lines (shares and bonds), at 15:30 CET for secondary lines and at 16:30 CET for bonds.
  • Barring exceptions, the reference price for matched orders will be the last price recorded or the last bid/ask price for the main lines.

Each order must indicate the side (buy or sell), the equity's name or identifying characteristics, the quantity to be traded, and all other details necessary for proper order execution. Orders can be stipulated as ‘limit’, ‘best limit’ (previously called ‘market-to-limit’), ‘must be filled’, ‘stop-loss’, ‘stop-limit’, or ‘all or none’. Orders can also stipulate special execution terms, as permitted by the trading platform.

All trading takes place through a centralized order book that complies with the same rules and procedures as those in place on NYSE Euronext’s regulated markets.

Settlement occurs automatically three days after the trade for Free Market equities admitted to Euroclear Bank or CIK operations. The trades are cleared and guaranteed by LCH.Clearnet, under its own terms and conditions. For equities not admitted to Euroclear Bank or CIK operations, the formalities of bearer registration and removal with the issuer or delegated transfer agent are accomplished by transfer order, initiated by the trading member involved in the trade.