Hmm...class action is a corporate action where companies had to pay clients who had previously purchased or have sold off their shares during a certain period and is deemed to have compensation due to some issues.
For example, Royal Dutch Shell has the following class action, that shareholders who had purchased during this period of April 8, 1999 till March 15, 2004 will be eligible for this compensation. Do remember to keep your brokage record or receipts.
Source: http://www.shell.com/home/content/investor/reserves_settlement/us/us_reserves_settlement.html
Sunday, November 16, 2008
Saturday, November 15, 2008
Orders for HK market
There are more order type in HK market than SGX. Do look up your brokage provider as they have a better explaination on this order types or HKEx.
Orders for Matching period
Both Auction orders, limit and market, can only be used during the matching period.
Auction market order
For auction market order, its a market order that will be filled at the prevailing market price during the matching period and enjoy a matching priority than auction limit order.
Auction limit order
For auction limit order, the price will only be filled at that price or better. After the matching period ends, the order will converted to a limit order. If the limit price deviate away from the current trading price by more that 9 bids or more, the order will be rejected. Thus one will need to monitor the order.
Orders after matching period
Both limit and enhance limit orders are orders that will be filled at a better price or the limit price submitted by you. So whats the different for enhance limit order? Oh, theres another Special Limit order as well.
Enhanced Limit Order (ELO):
An ELO allows matching of up to five price queues at the same time. The input order price of an ELO can be matched up to four spreads better than the best price on the other side of the market. Any unfilled quantity of an ELO after matching will be converted into a Limit Order at the input order price.
Special Limit Order (SLO):
A SLO matches up to five price queues (i.e. the best price queue and the next four queues each at one-spread away) as long as the traded price is not worse than the input limit price. Any unfilled quantity of an SLO after matching will be cancelled by AMS/3.
More information about ELO and SLO is available on the Hong Kong Stock Exchange (HKEX) web site.
Source: http://www.dbsvonline.com/English/index.asp
Think it will be better if there are numerical examples which show the working of ELO. Will update again.
Orders for Matching period
Both Auction orders, limit and market, can only be used during the matching period.
Auction market order
For auction market order, its a market order that will be filled at the prevailing market price during the matching period and enjoy a matching priority than auction limit order.
Auction limit order
For auction limit order, the price will only be filled at that price or better. After the matching period ends, the order will converted to a limit order. If the limit price deviate away from the current trading price by more that 9 bids or more, the order will be rejected. Thus one will need to monitor the order.
Orders after matching period
Both limit and enhance limit orders are orders that will be filled at a better price or the limit price submitted by you. So whats the different for enhance limit order? Oh, theres another Special Limit order as well.
Enhanced Limit Order (ELO):
An ELO allows matching of up to five price queues at the same time. The input order price of an ELO can be matched up to four spreads better than the best price on the other side of the market. Any unfilled quantity of an ELO after matching will be converted into a Limit Order at the input order price.
Special Limit Order (SLO):
A SLO matches up to five price queues (i.e. the best price queue and the next four queues each at one-spread away) as long as the traded price is not worse than the input limit price. Any unfilled quantity of an SLO after matching will be cancelled by AMS/3.
More information about ELO and SLO is available on the Hong Kong Stock Exchange (HKEX) web site.
Source: http://www.dbsvonline.com/English/index.asp
Think it will be better if there are numerical examples which show the working of ELO. Will update again.
Day high and low price for US stocks
It seems that prices recorded for the day high and low, the relevent engines or stock price updates you see in websites which provide free price quotes, actually consider the best high and low prices for all the the various US exchanges. What do i meant?
For example, websites which provide free price quote shows counter X has a day high of 6.42 at around 11pm SGT. Your initial order for 6.4 wasnt filled. And you will ponder why?
The reason is the price quotes in these websites, perhaps brokages, their engine quote all the high and low price in all the exchanges that the counter is trading.
However, the order submited to your particular exchange, lets say, NYSE, at that point of time, was only trading 6.10, for counter X, despite the websites and engines show a day high for 6.42. This high price is recorded as it is the highest price among all the US exchanges that is trading at the point of time for counter X, but for NYSE, the price didnt penetrated this price of 6.42.
Haha..hope im making sense here.
For example, websites which provide free price quote shows counter X has a day high of 6.42 at around 11pm SGT. Your initial order for 6.4 wasnt filled. And you will ponder why?
The reason is the price quotes in these websites, perhaps brokages, their engine quote all the high and low price in all the exchanges that the counter is trading.
However, the order submited to your particular exchange, lets say, NYSE, at that point of time, was only trading 6.10, for counter X, despite the websites and engines show a day high for 6.42. This high price is recorded as it is the highest price among all the US exchanges that is trading at the point of time for counter X, but for NYSE, the price didnt penetrated this price of 6.42.
Haha..hope im making sense here.
Wednesday, November 12, 2008
Corporate action - Reverse Stock Splits
What i learn from corporation actions, is that for every action, there must be a reason...haha...what crap im talking. Well...just recently RBS have a reverse stock split for 20 to 1 share, meaning for every 20 shares you have, it will be reduced to 1 share, of course, there will be a price adjustment.
At first, the share price will be unusually high, but if you do proportional or ratio calculation, actually it may not be better off also.
There will be implications for the corporation actions. Whether is it good or bad for the stock, you will have to ponder what is the reason or intention of this corporation action taken.
Reverse stock splits are often seen as negative corporate actions because they are a tactic used by companies that have seen their share prices fall into the $1 range and, therefore, run the risk of being delisted from stock exchanges that have minimum share price rules. For example, if a company is listed on the Nasdaq and its shares fall below $1, it runs the risk of being delisted; companies sometimes reverse split to increase share price, allowing them to continue to trade on a reputable stock exchange
Source: http://www.investopedia.com/ask/answers/06/reversestocksplit.asp
News on RBS corporation action
http://seekingalpha.com/article/105148-will-royal-bank-of-scotland-s-reverse-split-help-its-share-price
RBS Release details
http://www.investors.rbs.com/investor_relations/announcements/ReleaseDetail.cfm?ReleaseID=344152
At first, the share price will be unusually high, but if you do proportional or ratio calculation, actually it may not be better off also.
There will be implications for the corporation actions. Whether is it good or bad for the stock, you will have to ponder what is the reason or intention of this corporation action taken.
Reverse stock splits are often seen as negative corporate actions because they are a tactic used by companies that have seen their share prices fall into the $1 range and, therefore, run the risk of being delisted from stock exchanges that have minimum share price rules. For example, if a company is listed on the Nasdaq and its shares fall below $1, it runs the risk of being delisted; companies sometimes reverse split to increase share price, allowing them to continue to trade on a reputable stock exchange
Source: http://www.investopedia.com/ask/answers/06/reversestocksplit.asp
News on RBS corporation action
http://seekingalpha.com/article/105148-will-royal-bank-of-scotland-s-reverse-split-help-its-share-price
RBS Release details
http://www.investors.rbs.com/investor_relations/announcements/ReleaseDetail.cfm?ReleaseID=344152
Daylight Saving Time (DST)
Hmm...didnt realise the impact of this DST. It delays the opening time for foreign markets, but also affect FX market also in a way as it confuses the traders what hours to use despite FX is tradin 24-7 till sat.
DST for US, UK Equities market in SG/HK timing
Source: http://www.dbsvonline.com/English/index.asp
DST for US, UK Equities market in SG/HK timing
Source: http://www.dbsvonline.com/English/index.asp
SGX Extended Contracts
Another new deriativies will be lanuched next year.
One can long or short and hold on to this open position till the end of the month, the last working day for the month. Margin will be required and of cos, there will be margin calls etc. Will update more once more information is available.
The key features of ES contracts are:
- Each contract will be for 35 days, starting from the 25th of each month until the last trading day (LTD) of the contract month, i.e. the 31st of the following month.
- If the 25th and/or 31st are non-trading days, the contract will start from and end
on the last trading days before those dates. For example, an ES contract that starts trading on 23 January 2009 will have its LTD on 27 February 2009.
- Settlement will take place by way of delivery of the underlying securities on LTD plus three days (LTD+3). If bought on the first day of the ES contract, this gives investors up to 38 days to settle the contracts with the actual securities – 35 days longer than for normal securities investments.
- Margins, which are a fraction of the full trade value, are required to be paid to trade ES contracts. The margins range from 5% to 20% of the cost of one lot of the underlying stock. The full amount of the trade is payable on settlement day, which is LTD+3.
Source: http://info.sgx.com/webnewscentre.nsf/b9c790d0d5ba5d2548256dcf0049ce28/48256838002f07b1482574f80019600c?OpenDocument
One can long or short and hold on to this open position till the end of the month, the last working day for the month. Margin will be required and of cos, there will be margin calls etc. Will update more once more information is available.
The key features of ES contracts are:
- Each contract will be for 35 days, starting from the 25th of each month until the last trading day (LTD) of the contract month, i.e. the 31st of the following month.
- If the 25th and/or 31st are non-trading days, the contract will start from and end
on the last trading days before those dates. For example, an ES contract that starts trading on 23 January 2009 will have its LTD on 27 February 2009.
- Settlement will take place by way of delivery of the underlying securities on LTD plus three days (LTD+3). If bought on the first day of the ES contract, this gives investors up to 38 days to settle the contracts with the actual securities – 35 days longer than for normal securities investments.
- Margins, which are a fraction of the full trade value, are required to be paid to trade ES contracts. The margins range from 5% to 20% of the cost of one lot of the underlying stock. The full amount of the trade is payable on settlement day, which is LTD+3.
Source: http://info.sgx.com/webnewscentre.nsf/b9c790d0d5ba5d2548256dcf0049ce28/48256838002f07b1482574f80019600c?OpenDocument
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