The Lusaka Securities Exchange (LuSE) has specific trading hours, and Chuuma must manage client orders placed outside these hours. Here’s how trading hours are structured and how Chuuma handles orders placed outside these times:

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LuSE Trading Hours

  • The LuSE’s official market trading hours for the Equity Board and the Debt Board are from 10:00 to 14:00 hrs, Monday to Friday.

  • Trading is divided into sessions, specifically a pre-opening session and a continuous trading session:

    • Pre-opening Session: 10:00 hrs to 11:00 hrs. During this time, orders can be entered, deleted, or amended, but no trades take place.

    • Continuous Trading Session: 11:00 hrs to 14:00 hrs. This is when actual trading occurs, with orders being matched and executed.

  • The Odd Lot Board also operates from 11:00 hrs to 14:00 hrs, with a continuous session.

Equity/Normal Board

For trading listed and quoted ordinary and preference shares with orders needing to be in multiples of 100

Odd Lot Board

The Odd Lot Board is used for trading listed and quoted ordinary and preference shares in quantities less than 100 securities.

Orders for shares less than 100 are not allowed in the pre-opening session. The pre-opening session is specifically designed for the Equity/Normal Board, which requires orders to be in multiples of 100. Shares less than 100 are traded on the Odd Lot Board, which has different operating hours and does not have a pre-opening session.

Key points about trading sessions and order sizes:

  • Equity/Normal Board: The minimum trading quantity on the Equity Board is 100 securities, and orders must be in multiples of 100. This board has a pre-opening session from 10:00 to 11:00 hrs, during which orders can be entered, amended, or deleted, but no trades take place.

  • Odd Lot Board: The Odd Lot Board is for trading listed shares in quantities less than 100. The trading unit is one security, and the maximum is 99 securities. This board operates a continuous trading session from 11:00 to 14:00 hrs.

Therefore, any order with a quantity less than 100 must be placed on the Odd Lot Board, which does not have a pre-opening session. Orders of this size would be rejected if submitted during the pre-opening session of the Equity Board.

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Chuuma’s Handling of Orders Placed Outside Trading Hours

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Order Queuing

Orders placed outside of LuSE trading hours will be queued by Chuuma and submitted to the LuSE when the market opens.

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Order Types

Chuuma supports different order types, including market orders and limit orders. Market orders are executed at the best available price, while limit orders are executed at a specified price or better.

  • Market Orders cannot be amended.

  • Limit Orders can have qualifiers, such as “Fill or Kill” (FOK) or “Fill and Kill” (FAK). FOK orders require immediate execution of the entire order, or it is cancelled, while FAK orders allow for partial execution with the remainder being cancelled.

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Order Attributes

Limit orders can have a time-in-force attribute, such as “Good Till Day” (GTD) for a set number of days or a “Day Order” that is valid only for the current trading day.

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Pre-Opening Session

Orders placed before the market opens will participate in the opening auction. However, market orders and orders with FOK, FAK and Disclosed quantity/Iceberg Order attributes are not allowed during pre-opening.

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Order Validation

Before submitting orders to the LuSE, Chuuma validates them for accuracy, client fund sufficiency, and market compliance.

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Order Execution

Once submitted, the LuSE’s Automated Trading System (ATS) matches buy and sell orders based on price and time priority.

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Additional Considerations

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Order Book

The ATS maintains an order book for each security, which is divided into bids and offers. Orders are queued based on price and time priority.

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Matching Rules

During continuous trading, orders are matched based on price priority (highest bid and lowest offer) and time priority (earlier orders have precedence).

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Trade Settlement

Chuuma ensures that trade settlements adhere to LuSE timelines, which is typically T+3 (two business days after the trade date).

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Market Halts

The LuSE may halt trading due to technical issues, significant price decreases, or other factors. In such cases, Chuuma would follow the LuSE’s procedures and communicate any necessary information to clients.

By adhering to these procedures, Chuuma aims to provide a reliable and efficient trading experience for its users, while ensuring compliance with the LuSE’s regulations.