Stock cross trade definition
A cross is a trade resulting from the entry by a Participating Organization of both the order to buy and the order to sell a security. It does not include a trade in which the Subscriber has entered one of the stock cross trade definition as a jitney order.
TMX Group offers a variety of specialty cross types designed to decrease costs associated with advanced trading techniques. Stock cross trade definition specialty cross type provides distinct market advantages and these crosses are not subject to interference.
In addition, because specialty cross types are flagged publicly, they offer the marketplace better transparency for large specialized transactions. Although the specialty cross types may be executed anonymously, brokers must report each cross using the appropriate marker i.
This alerts the Toronto Stock Exchange system that the cross can fall outside of normal market parameters. During continuous trading an attributed cross will seek to match previously booked attributed orders from the same PO at the cross price.
The contra-side of the cross that remains unfilled because it gives up stock cross trade definition volume is then killed immediately. A Basis Cross is a trade whereby a basket of securities or an index participation unit is transacted at prices achieved through the execution of related exchange-traded derivative instruments which may include index futures, index options and index participation units in an amount that will correspond to an equivalent market exposure.
The price of the basis cross may be printed outside the best bid and ask subject to regulatory restrictions and may be up to three decimal places. A stock cross trade definition cross will not set the last sale price. A transaction for the purpose of executing a trade at a volume-weighted average price of a security traded for a continuous period on or during a trading day on TSX and TSXV. The price of the VWAP cross may be printed outside the best bid and ask subject to regulatory restrictions and may be up to three decimal places.
A VWAP cross will not set the last sale price. A trade resulting from a paired order placed by a participating organization on behalf of a client to execute an order on a security that is contingent on the execution of a second order placed by the same client for an offsetting volume of a related security. The price of the contingent cross may be printed outside the best bid and ask subject to regulatory restrictions and may stock cross trade definition up to three decimal places.
A contingent cross will set the last sale price. Bypass orders can be used to sweep the visible volume without interference from the undisclosed volumes, and therefore limit the trader's exposure. A cross bypass order is not subject to cross interference. Also known as Specialty Price Cross, this is a closing price cross resulting from an order placed by a PO on behalf of a client for execution in the Special Trading Session at the last sale price.
This cross type is only available during the extended session from 4: A Special Trading Session Cross may only be entered as a board lot trade and must be reported using the appropriate marker. A Special Trading Session Cross cannot change the last sale price.
For more details on any of the cross types above, please refer to the Order Types and Functionality guideor contact your TMX account manager. TMX Group Limited and its affiliates stock cross trade definition not endorse or recommend any securities issued by any companies identified on, or linked through, this site. Please seek professional stock cross trade definition to evaluate specific securities or other content on this site. All content including any links to third party sites is stock cross trade definition for informational purposes only and not for trading purposesand is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice.
The views, opinions and advice of any third party reflect those of the individual authors and are not endorsed by TMX Group Limited or its affiliates. TMX Group Limited and it affiliates have not prepared, reviewed or updated the content of third parties on this site or the content of any third party sites, and assume no responsibility for such information. The Exchanges have provided companies with access to equity capital for over years. Our issuers list alongside their peers, and benefit from being listed on a leading global exchange with integrity, stock cross trade definition and opportunity.
Stock cross trade definition Cross A Basis Cross is a trade whereby a basket of securities or an index participation unit is transacted at prices achieved through the execution of related exchange-traded derivative instruments which may include index futures, index options and index participation units in an amount that will correspond to an equivalent market exposure. Contingent Cross A trade resulting from a paired order placed by a participating organization on behalf of a client to execute an order on a security that is contingent on the execution of a second order placed by the same client for an offsetting volume of a related security.
Bypass Stock cross trade definition Bypass orders can be used to sweep the visible volume without interference from the undisclosed volumes, and therefore limit the trader's exposure. Special Trading Session Cross Also known as Specialty Price Cross, this is a closing price cross resulting from an order placed by a PO on behalf of a client for execution in the Special Trading Session at the last sale price.
Listing With Us The Exchanges have provided companies with access to equity capital for over years.
Speak the language of the stock market - consult our Stock Market Terms for a glossary of terms and vocabulary that may help you better understand the capital markets. Some of the definitions are TSX-specific and, as a result, may differ from standard general definitions.
Advanced Companies Companies listed on TSX Venture Exchange that meet higher asset, market value and shareholder distribution requirements than stock cross trade definition classified as venture companies. Stock cross trade definition A securities stock cross trade definition is classified as an agent when it acts on behalf of its clients as buyer or seller of a security.
The agent does not own the security at any time during the transaction. All-or-None Order An order that must be filled completely or the trade will not take place. American-Style Options Options that can be exercised any time during their lifetime.
These are also known as open options. Annual Report A publication, including financial statements and a report on operations, issued by a company to its shareholders at the company's fiscal year-end. Anonymous Trading Permits Participating Organizations to voluntarily withhold their true broker identities when entering orders and trades on TSX trading systems. Arbitrage The simultaneous purchase of a security on one stock market and the sale of the same security on another stock market at prices which yield a profit.
Ask or Offer The lowest price at which someone is willing to sell the security. When combined with the bid price information, it forms the basis of a stock stock cross trade definition.
Ask Size The aggregate size in board lots of the most recent ask to stock cross trade definition a particular security. Assets Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a company's balance sheet or an individual's net worth statement.
Assignment The notification to the seller of an option by the clearing corporation that the buyer of the option is enforcing the terms of the option's contract. At-the-Money When the price of the underlying equity, index or commodity equals the strike price of the option. Averages and Indices Statistical tools that measure the state of the stock market or the economy, based on the performance of stocks, bonds or other components.
Averaging Down Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment.
Bb Basis Point One-hundredth of a percentage point. For example, the difference between 5. Best-Efforts Underwriting A type of underwriting where the investment firm acts as an agent. The firm agrees to use its best efforts to sell the new issue of securities, but stock cross trade definition not guarantee the issuing company that the securities to be issued will be sold.
Beta A measurement of the relationship between the price of a stock and the movement of the whole market. Better-Price-Limit Orders An order with stock cross trade definition limit price better than the best price on the opposite side of the market. A better-priced buy order has a limit price higher than the best offering.
A better-priced sell order has a limit price lower than the best bid. These are available only at the opening. Bid The highest price a buyer is willing to pay for a stock. When combined with the ask price information, it forms the basis of a stock quote. Bid Size The aggregate size in board lots of the most recent bid to buy a particular security. Black-Scholes Model A mathematical model used to calculate the theoretical price of an option.
Blue Chip Stocks Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities. Book An electronic record of all pending buy and sell orders for a particular stock. Booked Orders Orders that do not trade immediately upon entry. These stock cross trade definition are also known as outstanding orders. Bought-Deal Underwriting A type of underwriting where the brokerage firm acts as principal.
The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decreases before the brokerage firm has had a chance to resell the securities to its clients, the firm absorbs the loss. Broker or Brokerage Firm A securities firm or a registered investment advisor affiliated with a firm. Brokers are the link between investors and the stock market. When acting as a broker for the purchase or sale of listed stock, stock cross trade definition investment advisor does not own the securities but acts as an agent for the buyer and seller and charges a commission for these services.
Business Trust A trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency.
Buy-In If a broker fails to deliver securities sold to another broker on the settlement date, the receiving broker may buy the securities stock cross trade definition the current market price of the stock and charge the delivering broker the cost difference of such a purchase.
Bypass Order A type of order that is filled only in a visible "lit" market. A bypass order ignores dark pools and undisplayed orders. Cc Call Option An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase.
CDS is Canada's national securities depository, clearing and settlement hub. CDS supports Canada's equity, fixed income and money markets, and is accountable for the safe custody and movement of securities, accurate record keeping, the processing of post-trade transactions, and the collection and distribution of entitlements relating to the securities that have been deposited by participants.
Previously known as Trans Canada Options Inc. Canadian Investor Protection Fund CIPF A fund established to protect customers in the event of insolvency of a member of any of the following sponsoring self-regulatory organizations: Capital To an economist, stock cross trade definition means machinery, factories and inventory stock cross trade definition to produce other products.
To investors, capital means their cash plus the financial assets they have invested in securities, their home and other fixed assets.
Capital Gain or Loss Profit or loss resulting from the sale of certain assets classified stock cross trade definition the federal income tax legislation as capital assets. This includes stocks and other investments such as investment property. Capital Gains Distribution A taxable distribution out of taxable gains realized by the issuer. It is generally paid to security holders of trusts, partnerships, and funds. Like all distributions, it may be paid in securities or cash. The amount, payable date, and record date are established by the issuer.
Capital Pool Companies The TSX Venture Exchange Capital Pool Company CPC program offers a unique listing opportunity that brings experienced management teams with proven public financing ability together with development-stage companies in need of capital and management expertise.
Unlike traditional public companies, capital pools list and begin trading without an operating business. The nature of their business is to find and acquire a promising early-stage venture, and their treasuries are funded expressly for the search and due diligence process.
Capital Stock All shares representing ownership of a company, including preferred and common stock cross trade definition. Capital Trust A form of financial trust that differs from other trusts in stock cross trade definition it looks more like stock cross trade definition fixed income instrument than an equity issue.
Capital trusts are generally issued by banks or other financial intermediaries. The business objective of capital trusts is to acquire and hold assets that will generate net income for distribution to unit holders. The trust's assets may consist of residential mortgages, mortgage co-ownership interests, mortgage-backed securities, other eligible investments, and other qualified debt obligations. Capitalization Change Any change in the issued and outstanding listed securities of an issuer.
This change may involve the issuance, repurchase, or cancellation of listed securities or listed securities that are issuable upon conversion or exchange of other securities of an issuer. Capitalization Effective Date The date that the capitalization change is reflected in the issuer's share register, regardless of when it is reported to the Exchange. Capitalization or Capital Structure Total dollar amount of all money invested in a company, such as debt, preferred and common stock, stock cross trade definition surplus and retained earnings of a company.
Capped Indices Indices for which there is a maximum relative weight by market capitalization for any one constituent. Any individual constituent of the index can represent no more stock cross trade definition a specified percent of the index. Cash A special term attached to an equity order that requires the trade to be settled either the same day or the following business day for cash.
Cash Settlement Settlement of an option contract not by delivery of the underlying shares, but by a cash payment of the difference between the strike or exercise price and the underlying settlement price. Certificate The physical document that shows ownership of a bond, stock or other security. Changes in Stock List Any modification to the list of tradable issues of an exchange.
Clearing Day Any business day on which the clearing corporation is open to effect trade clearing and settlement. Client Order An order from a retail customer of a Participating Organization. Close Price Stock cross trade definition price of the last board lot trade executed at the close of trading.
Closed-End Investment Fund An investment trust that issues a fixed number of securities that trade on a stock exchange or in the over-the-counter market. Like other publicly traded securities, the market price of closed-end fund securities fluctuates and is determined by supply and demand in the marketplace. Closing Transaction An order to close out an existing open futures or options contract. Commission The fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
Commodities Products used for commerce that are traded on a separate, authorized commodities exchange. Commodities include agricultural products and natural resources such as timber, oil and metals. Commodities are the basis for futures contracts traded on these exchanges. Common Shares or Common Stock Securities that represent part ownership in a company and generally carry voting privileges.
Common shareholders may be paid dividends, but only after preferred shareholders are paid. Common shareholders are last in line after creditors, debt holders and preferred stock cross trade definition to claim any of a company's assets in the event of liquidation. Under UMIR rule Non-clearing firms may report through the firm that is responsible for their clearing.
Continuous Disclosure A company's ongoing obligation to inform the public of stock cross trade definition corporate events, both favourable and unfavourable.
Cross listing of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange. This concept is distinctly different than examples such as: In most cases, the ADR is convertible back into the original instrument but needs to go through a process of conversion. However, many companies stock cross trade definition, where the stock is technically fungible between exchanges.
Royal Dutch Shell, IBM, and Siemens are all examples where the same issue is traded in multiple markets "multi-listed". Prices are subject to local market conditions, as well as Stock cross trade definition fluctuations and are not kept in perfect parity between markets. While 'technically' fungible, these separate primary listings they would all be considered 'primary' listings are subject to re-registration which creates significant settlement risk if an investor wants to buy on one exchange and sell in another especially where the currencies differ.
Also, this is distinct from being 'admitted for trading' where a foreign share is accessible in a different market through an exchange convention, and not actually registered within that stock cross trade definition market.
Cross-listing is especially common for companies that started out in a small market but grew into a larger market. For example, numerous large stock cross trade definition. Depository Receipts are instruments derived from another underlying instrument while Multi-listed instruments represent the actual stock of a company.
Depository Receipts are convertible back to ordinary shares, following a process dependent upon the sponsoring facility that created the instrument. Ownership of a Depository Receipt does not convey the same rights as a direct holder of equity shares until the Receipt is surrendered and converted into an actual equity share holding. Multi listed or cross-listed shares, by contrast, are technically the same financial instrument.
Fungibility is a concern across markets. There is a re-registration process that must occur to move the number of outstanding shares from one jurisdiction to the other.
This is primarily due to market inefficiencies and structures required to maintain the integrity of registered shares within specific jurisdictions typically regulatory driven. It is important to note that IBM is stock cross trade definition cross-listed in Frankfurt, stock cross trade definition which case, those transactions will settle via the local German market processes.
The academic literature has identified a number of different arguments to cross-list abroad in addition to a listing on the domestic exchange. Roosenboom and Van Dijk  distinguish between the following motivations:. There are, however, also disadvantages in deciding to cross-list: Some financial media have argued that the implementation of the Sarbanes-Oxley act in the United States has made the NYSE less attractive for cross-listings, but recent academic research finds little evidence to support this, see Doidge, Karolyi, and Stulz A questionnaire asking managers of international companies has shown [ citation needed ] that firms cross-list in the United States mainly because of specific U.
Stock cross trade definition the question of what deters them from an official US listing, they mentioned the time-consuming and expensive US-GAAP reconciliations as well as listing fees as the hardest impediments.
Additional disclosure requirements were cited as less difficult to overcome. There is a vast academic literature on the impact of cross-listings on the value of the cross-listed firms.
Most studies for example, Miller, find that a cross-listing on a U. Doidge, Karolyi, and Stulz  show that companies with a cross-listing in the United States have a higher valuation than non-cross-listed corporations, especially for firms with high growth opportunities domiciled in countries with relatively weak investor protection. Recent research,  shows that the listing premium for crosslisting has evaporated, due to new U.
Some recent academic research finds that smaller foreign firms seeking cross listing venues may be opting for UK exchanges over U. On the other hand, larger firms seeking "bonding" benefits from a U. The academic literature largely ignores cross-listings on non-U. However, there are many cross-listings on exchanges in Europe and Asia. In the s there was a wave of cross-listings of U. These findings suggest that cross-listings on Anglo-Saxon exchanges create more value than on other exchanges.
They stock cross trade definition highlight the incomplete understanding of why firms cross-list outside the UK and the United States, as stock cross trade definition of the arguments discussed stock cross trade definition enhanced liquidity, improved disclosure, and bonding do not apply. From Wikipedia, the free encyclopedia.
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Does the Destination Market Matter? Evaluating Foreign Listing Choices over Time". Evidence from depositary receipts.
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