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Explained: Price Monitoring Extensions
For anyone trading in smaller cap companies, price monitoring extensions can be an extremely common occurrence. But what are they? Why do they occur? And are they good or bad? Find out the answers to these questions and more with this article on price monitoring extensions.
What is the role of an auction?
Any discussion on price monitoring extensions must firstly begin by covering auctions. Auctions are small intervals during the regular trading day where the electronic order book is effectively frozen. During this time, orders are collected from the market – known as the Call Period – and the matching algorithm considers the orders that have been entered and calculates the price that the maximum amount of shares can be executed. The intention is to find the most popular and reliable price for a security.
At the end of this Call Period, orders that can be matched are executed in an event referred to as the uncrossing, which takes place within a randomised 30 seconds of the end of the Call Period. However, should the auction fail to generate a reliable price, then a price monitoring extension is generated.
What happens during a price monitoring extension?
Should the preceding auction fail to generate a price within a predetermined percentage above or below the reference price, which is the price just before the stock went into the auction, then a price monitoring extension RNS is automatically released to the market, and the Call Period is extended by another 5 minutes. This extra 5 minutes provides participants the chance to review the prices of the orders that have been entered and if appropriate add, delete or amend.
Should this additional period still fail to generate a reliable price, then a second price monitoring extension is released to the market, and the Call Period is extended by another 5 minutes. On this occasion, should the additional period also fail to generate a price within tolerance levels, then this price will be taken forward and the orders that can be matched will be executed in the uncrossing.
Why might the auction fail to generate an acceptable price?
One reason might be that the share has such a wide spread during that day of trading that the bid and ask price are far away from the mid-price. Given that the majority of AIM companies trade on the SETSqx trading system, where there is no maximum spread requirements, this will likely be the problem in a lot of instances.
Another reason for a price monitoring extenion could be the release of news that has a sudden and significant impact on the price that investors are willing to pay for the company’s shares.
When do price monitoring extensions occur?
Price monitoring extensions occur off of the back of an auction, which take place at different times during the trading day depending on the platform the security is traded on. Therefore, as all AIM-listed companies are traded on either the SETS or SETSqx trading sy
RNS @ 16:35hrs
The option was Down (by you) or Up, my POSSIBILITY is UP ! Sorry it 'up' you.
TST, There is a possibility the SP might take-off after the Umbrella Agreement signature, on 30thJun'22. Let us see, as per the 0.8p agreement signed in April, the SP is reqd to be at 2.4p for 5 days to be allowed to sold (the 0.8p shares). This might be the first time shareholders have been taken care by HAA, additionally there is a possibility we might get a good news from Saudi too on 30thJun.
LINK LINK LINK
Apologies, it was posted by Simpkins1994 on 23rdJun 18:32hrs..........they are the same lots CMV etc
"The Company received a Reminder of Deadline letter late on 24 June from the Minister of Mines referring to a new deadline of 30 June 2022 ....."
How come on 23rdJun'22, CMV9999, highlighted us of "972 licenses revoked", one day before KEFI receiving this notice on 24thJun, listed today in the RNS ? This posted at 18:32 on 23rdJun.
There is some mischief here............KEFI need to be informed or AIM's.
So what do you want me to do NOW ?
meant 'Browser'
Works for me on my DuckDuckGo webservers https://www.capitalethiopia.com/capital/gold-exploration-firm-on-verge-of-losing-license/
"As harry commented in the article it includes a response from the company.
As for the mining ministry things are a bit haphazard there generally."
These are equally 'Not Confirmed'. Too many rumours here.
Robjm66 "After Wednesday’s announcement, according to sources the Ministry had sent a letter to KEFI to submit their financial report until June 30, indicating that if not adhered to, the termination will continue."
This is another Online NP, it has to be this week. If it was listed on 15thJun'22, why is there none MOM document/notice on the ministry website ?
Robjm66, i would suggest you add 'NOT COMFIRMED'. The very fact that this article was sent by you YESTERDAY, i suspect it has been forward to you by the "usual suspects". Very clever.
"1. Who exactly are the Mining Financiers ($60m) and Ethiopian Subsidiaries of International Groups ($35m) and Ethiopian Private Investor ($9m)."
All i am looking at 2.4p PS, after the umbrella agreement, i don't care $80m or the above.
My proposition, we are close to the agreement. Correct me if i am wrong, we have a AGM on 28thJun'22, let it all wash then.
The $80m deposit is the latest, NO Where was mentioned till MVA9999 raised this and where is he ?
Guys start with the profiles of urai5.
https://www.lse.co.uk/profiles/urai5/?page=2
https://www.fanabc.com/english/ethiopia-world-bank-sign-80m-grants-agreement/
http://www.mom.gov.et/index.php/revoked-licenses-2/
Crack10 has posted this on 10 Jun'21 "Yesterday cracking newspaper cuttings on Tulu Kapi:
"A warning letter from State Minister Simen Wube states that the company will take administrative and legal action in accordance with the Mining Proclamation if it fails to operate within the required time."
I can send you the link to the article if you ask me nicely ??"
Suspect Aim999, MVA9999 and Crack10 are the same individual.
Crack10, Am aware this BB is controlled by an Admin. I don't think any posters are allowed to post false information here.
Crack10, There is a international company you are talking off, Is there any Ethiopian company into Mining ! So show me a Ethiopian Govt statement, not some Egyptian crypt.
TakeleUma can be numerous Twitters, Give something credible.
crack10, "Fuller and clearer translation of Minister's press briefing 2 days ago says license will automatically be revoked unless kefi 'registers' its $80m .."
Can you share the link for this statement ?
I couldn't find out on the http://www.mom.gov.et/index.php/newsroom/