2.1 Quotation Rules - 4-spread Rules
Order input prices are currently governed by the quotation rules of the Rules of the Exchange. The quotation rules were designed to ensure order prices are moving orderly within a reasonable range. The Enhanced Limit Order and Special Limit Order can match up to two price queues at a time, and the quotation rules would be relaxed (from 4 spreads to 8 spreads) to maintain market continuity and efficiency.
2.2 Maximum order size
The current maximum order size at 400 board lots was last revised on 26 May 1997. An increase of the maximum order size will enable traders to input large client orders into the System without splitting them up and will thus increase the efficiency of traders' operation. In addition, a small maximum order size will limit the use of the Enhanced Limited Order and Special Limit Order which allow the matching of two price queues at a time. Therefore, the maximum order size would increase from 400 to 600 board lots.
2.3 Maximum number of outstanding orders per broker ID
With the introduction of the new trading devices, namely, the MWS and BSS, the number of workstations for order input and hence the number of outstanding orders per broker ID has been increasing. In addition, it is anticipated that there will be more orders coming into the System through the Order Routing System "ORS" when it is implemented. This would result in a larger number of outstanding orders on average, therefore, the maximum number of outstanding orders per broker ID would be increased from 800 to 2,000 orders.
2.4 Maximum number of orders per queue
The length of queue (currently at 1,000 orders per queue) represents the maximum number of orders of a particular stock that can be queued up at the same price level. It is anticipated that with the ORS in place, the number of orders will increase. The increase of the maximum number of orders per queue from 1,000 to 2,000 orders will facilitate brokers' trading operation.