Trading Procedure

The TFEX’s trading method centers around electronic trading. All orders and quotes are entered into a central order book where they are automatically sorted by type, price and entry time. The principle of matching used is the price / time priority. The TFEX trading system checks the price in the central order book and executes the orders with the highest price positioned before those orders with lower prices. A time stamp is assigned to all orders entered to determine the priority of each of the orders with the same price.

Only member firms are allowed to access the Exchange trading system. Investors place the orders via their brokers, which are TFEX members. To become a member of the TFEX, brokerage firms must first acquire a license from the Securities and Exchange Commission (SEC) and then apply for TFEX membership.

In order to assure comprehensive protection for all market participants, the TFEX monitors and supervises the entire range of trading activities. The TFEX’s Market Surveillance team uses computer tracking programs to trace, log, monitor and examine all events that exhibit irregularities. In addition, all historical trading activities have been stored in a database to enable immediate access for use.