The market models of the Vienna Stock Exchange describe the structural and regulatory framework for trading. A central component of a market model is the design of the Xetra® T7 trading procedures, which are used in the market. At the Vienna Stock Exchange, these include "Continuous Trading with Auctions", "Auction" and "Continuous Auction".
The market models of the Vienna Stock Exchange provide a reliable framework for orderly and efficient trading. They govern price determination, execution priority, and the interaction of various order types, trading phases, etc. The objective of the market models is to ensure high liquidity, efficient and transparent price discovery, and the highest possible level of stability and security. Based on this, the Vienna Stock Exchange offers a high-performance, fair, and competitive trading environment.
Continuous Trading with Auctions
"Continuous Trading with Auctions" is a key market model of the Vienna Stock Exchange in the Xetra® T7 trading system. It combines continuous price determination with scheduled auctions, thereby ensuring high liquidity as well as efficient and transparent price discovery.
In continuous trading, orders are continuously matched in the central order book and executed on the basis of price-time priority. In addition, auctions – such as the opening auction, intraday auctions, or the closing auction – take place at defined times.
Continuous trading ensures ongoing execution opportunities during trading hours, while auctions specifically pool liquidity – particularly at the start of trading, during volatile market phases, and at the close of trading.
Midpoint Trading
Throughout continuous trading, the Vienna Stock Exchange also offers midpoint trading. This allows midpoint orders and sweep orders to be executed at the midpoint price, which is calculated based on the best bid and ask limit prices in the central order book. The midpoint order book is separate from the central order book and is not published. This allows, in particular, larger orders to be executed with reduced market impact and greater discretion.
Midpoint trading is available for instruments in the prime market and the standard market (continuous), provided that the Vienna Stock Exchange is considered the most relevant market in terms of liquidity for the respective instrument.
Auction
With auctions, the liquidity available in a security is concentrated at a specific point in time. An auction consists of the call phase and the price determination. Prices are determined according to the principle of executing as many orders as possible. The auction price is the price at which the largest volume of orders can be executed and the fewest are left unfilled. The order book is open during the call phase. An indicative price of the best buy/sell limit is quoted to inform market participants of the market situation. An auction schedule is published to announce the times when specific securities are called.
Continuous Auction
Trading takes place throughout the trading day and starts with the pre-trading phase which is followed by the main trading phase and afterwards by the post-trading phase. The start of the main trading phase is triggered at the end of the pre-trading phase. Orders are matched in auctions. Generally, an auction has two phases (pre-call phase and an optional call phase) and the price determination phase. During the pre-call and call phase, all market participants may enter, change or delete orders. Furthermore, exchange members acting as liquidity providers may enter or delete quotes.
