Uncrossing Trade11 Jun 2019 23:41
This is my research....not my quote...
"Stockbroker standard definition of UT - Uncrossing trade: "This is used for for the single uncrossing trade detailing the total executed volume and uncrossing price as a result of a SETS auction."
I understand there is an auction at 4.30pm after the UK market closes. Quite why, I'm not sure, as I did think the entire trading day is somewhat of an auction. In the modern day with the computer connections we have, is the 4.30pm auction necessary?
The Uncrossing Trade seems to have an effect on the last price (what I did consider the closing price). Is the auction then just an extension of the trading day for a certain section of people? The closing price (at 4.30pm) does not stay the same, by 5.00pm it has changed. The logcial part of me used to say that 'the last trade for the day made at 4.29pm and 59 seconds is the closing price' - but this is not the case. I assume due to the Uncrossing Trade?
My assumption has been that the Uncrossing Trade is the total volume, and average price, of the 4.30pm auction. Is it also the secret (?) or large (?) or unreported trades that were done during that day? Reading the list of different trade types, it seems as though some trades do not have to be reported when they happen, they can be revealed hours later, or at the end of the day instead?
Who puts orders in to be filled during the Uncrossing Trade SETS auction? I currently think that it is big market makers, stockbrokers and such. Is it because they have traded during the day only with themselves - e.g. In total, their clients bought 50,000 shares in a particular stock and sold 20,000. They do not trade any of those in the real market during the day, instead they just buy 30,000 (the balance) during the auction at 4.30pm?
Any thoughts or information to put me on the right track would be appreciated Thanks
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