Orders

Warset permits use of a wide variety of orders to carry out various investment strategies tailored to investor needs and objectives in specific situations.By placing different types of orders, an investor may focus on different aspects of the transaction-some orders focus on execution at a specific price; others make execution dependent on the market situation. In placing an order, an investor must specify:

Orders with price limits

In these orders, the investor specifies the exact price at which s/he wants to buy or sell a given security.In the case of a purchase, this is the price above which the investor does not agree to execution of the order; while for sell orders, it is the price below which the investor is not willing to sell the securities.

Orders without price limit

Market order (MARKET; PCR in Polish abbreviation): These orders can be placed only during continuous trading (any phase except market balancing), and are executed at the price of the first best opposite order.The unfilled portion of the order becomes an order with a limit price equal to that at which the last transaction was concluded.Market orders may contain additional minimum size requirements or be placed as hidden orders.

Market-on-opening order (OPENING; PCRO in Polish abbreviation): These orders are used in auctions, and are placed during the phase in which orders are accepted for the opening and close in the continuous trading system and the single-price auction system, as well as during market balancing.They are executed, respectively, at the opening price, closing price, single price, or price determined during balancing.The unfilled portion of the order automatically becomes a price limit order with a limit equal to the opening price, closing price, single price, or price determined during balancing, respectively.These orders may not contain additional conditions limiting activation or minimum size; nor may they be placed as hidden orders.They also may not be modified during the intervention phase.

Must-be-filled orders (MBF; PKC in Polish abbreviation): Must-be-filled orders can be placed at all stages of continuous trading and the single-price auction, with the exception of the intervention phase and post-auction trading.When these orders are placed during the order collection period for the opening, close, single-price auction, and market balancing, they are executed at the opening price, closing price, single price, and price determined during market balancing, respectively.Must-be-filled orders cannot be modified during the intervention phase.In the continuous trading phase, however, with the exception of market balancing periods, if there is at least one opposite order with a limit price awaiting execution, a must-be-filled order is executed at the price or prices of the best opposite orders entered earlier and not yet executed.

At the time when a must-be-filled order is placed in the continuous trading phase, if the order book does not contain an opposite order with a limit price that ensures execution in full of the MBF order, the order is accepted into the order book and the market balancing process begins.

It should be kept in mind that neither MBF nor market-on-opening orders can be placed for warrants, subscription rights, or the debut session of a given security.

Additional requirements for order execution.

A minimum size order (MIN; Wmin in Polish abbreviation) specifies the number of securities below which the investor does not agree to execution of the order.This type of order may be placed only during post-auction trading and continuous trading (except during market balancing periods).If the orders in the order book do not make execution of this trade possible in an amount at least equal to the requirement stipulated by the investor, the order is cancelled.After partial execution (fulfilling the conditional minimum), the remainder stays in the order book as an order without minimum limit requirement.

Hidden orders (HID; WUJ in Polish abbreviation) may be placed during all phases of continuous trading and in the single-price auction system, with the exception of the intervention phase.Orders with a hidden value are filled gradually.The investor specifies the size of the portion to be successively realised, i.e. the number of securities to be displayed at a given time (minimum 100 securities).For example, if the total size of the order is 10 000 shares, and the amount to be displayed is 1 000 shares, then the order book shows only 1 000 shares; and after this part of the order is filled, the next 1 000 shares appear in the order book.This procedure is repeated until the order is executed in full (the remainder of the order is hidden from the market).When determining the opening, closing, single, and market balancing prices, the total volume of hidden orders is taken into account.

A stop order (STOP; LimAkt in Polish abbreviation) is not displayed immediately after being entered into the system, but is disclosed only if the indicative opening price or last price in continuous trading reach the level specified by the investor.In addition to an activation limit, then, these orders must also contain an execution limit or a must-be-filled requirement.These orders may be placed during all phases of continuous trading and the single-price auction, with the exception of the intervention and post-auction trading phases.Although they are active in the pre-opening phase, this does not mean that they are always displayed in the order book.Active stop orders may also disappear from the order book if the indicative opening price changes.The appearance and disappearance of stop orders is possible because in the pre-opening phase, transactions are not concluded; only the indicative opening price is determined, which changes as new orders are entered.In the case of buy orders, the activation limit must be less than or equal to the order limit, while in the case of sell orders, it must be greater than or equal to this limit, unless the order carries a must-be-filled condition.Once the order is entered, the activation limit in the case of buy orders must be greater, or in the case of sell orders, less than the price of the last transaction (if there is no last price, then the closing price from the previous session is used).Stop orders are displayed in the order book in the continuous trading phase, provided that the price of the last transaction or indicative price of a given security is, in the case of buy orders, greater than or equal to the disclosure limit, and in the case of sell orders, less than or equal to this limit; whereas in the pre-opening (closing) phase, or during balancing, stop orders are displayed if the limit or volume of the order causes a change in the indicative price.Among both must-be-filled orders and limit orders, those with a stop condition are filled last.

Where orders with identical price limits and stop conditions are concerned, the order in which they are executed depends on:

• In the continuous trading phase (except balancing): time of acceptance (in the case of orders with the same activation limit), or time of display (in the case of orders with different activation limits)
• In the case of orders executed at the opening (closing) price, single price, or price determined by balancing: time of acceptance by the trading system.

Stop orders appearing during continuous trading, or as the result of determination of the opening (closing) price, remain on the order book as orders without a stop condition.

Order validity

Broker orders may have a validity period set in the form of a specific date, or may be marked as day, good-'till-cancelled, fill-and-kill or fill-or-kill.A fill-and-kill order is valid until the first transaction is concluded (or first transactions, if the order is being executed via several transactions simultaneously).The order is executed immediately upon entering the system, and may be executed in part.If it is only partially executed, the unfilled portion is cancelled.These orders may be placed in any phase of continuous trading or the single-price auction system, with the exception of the intervention phase.

Orders marked fill-or-kill remain valid until the first transaction is concluded (or the first transactions, if the order is being executed via several transactions simultaneously).The order is executed immediately after being placed, but only in full - it cannot be filled in part.If the opposite orders in the book do not enable the order to be executed in full, it is cancelled.It must be kept in mind that in the continuous trading or post-auction trading phases, if there are no opposite orders with price limits enabling a transaction to be concluded at the moment an order marked fill-and-kill or fill-or-kill is placed, the order is cancelled.