Trade systems
Securities are classified into the following organized markets:
- the official stock exchange,
- the free market.
At the Banja Luka Stock Exchange, trading is performed in accordance with the continuous method and the method of periodic auctions with a prevailing price. Trading takes place five days per week: on Mondays, Tuesdays, Wednesdays, Thursdays and Fridays.
d Fridays.
Continuous trading method
The continuous method is used to trade shares of issuers at the stock exchange quotation. Continuous trading method is also used to trade shares at the free market that meet the liquidity criteria.
The liquidity criteria are:
- the securities trading value (BAM) divided by the number of possible trading days exceeds or equals BAM1,000.00,
- the number of transactions of securities divided by the number of possible trading days exceeds or equals 3 and
- the number of days of securities trading divided by the number of possible trading days exceeds or equals 0.50
The number of possible trading days must be greater than 30.
Liquidity criteria are calculated by obtaining data for the period of the previous six (6) months in relation to the day on which the calculation is made.
Trading is divided into three stages:
- before the market opening (from 8:30 to 09: 30+ "random time")
- opening the market (from 09:30 + "random time" until 13:00)
- closing the market (13:00)
Interrupted auctions last for 15 to 20 minutes. Daily price fluctuation is limited to ± 20% (static limit). Dynamic limits are at ± 3% (dynamic limit).
The equilibrium course at the market opening is calculated according to the following algorithm:
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volume of the largest volume of turnover,
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minimal residue,
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if the rest is on the purchase side, the highest price is taken and if the lowest price is on the sales side, the lowest price is taken into account,
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average price between the two selected prices according to the previous criteria.
Auction trading method
Block orders
