12The success <strong>of</strong> the electronic trad<strong>in</strong>g system and the decreas<strong>in</strong>g <strong>in</strong>terest for openoutcry trad<strong>in</strong>g f<strong>in</strong>ally resulted <strong>in</strong> clos<strong>in</strong>g the trad<strong>in</strong>g floor. Figure 5 illustrates themigration from floor to electronic trad<strong>in</strong>g after the implementation <strong>in</strong> 1997.Figure 5: Participation <strong>of</strong> the electronic trad<strong>in</strong>g (as percentage <strong>of</strong> total)Source: BOVESPA (2005a)In January 2000, <strong>stock</strong> <strong>exchanges</strong> <strong>in</strong> Brazil merged under the leadership <strong>of</strong>BOVESPA. 8 S<strong>in</strong>ce then, <strong>stock</strong>s are traded solely on BOVESPA, public securities onthe Rio de Janeiro Stock Exchanges, and the other regional <strong>exchanges</strong> conductactivities such as <strong>market</strong> development and provision <strong>of</strong> services to the local <strong>market</strong>s.(Brazil Report 2004)8 S<strong>in</strong>ce that time, the <strong>stock</strong> <strong>exchanges</strong> <strong>of</strong> Bahia-Sergipe-Alagoas, Bolsa Regional, Extremo Sul,M<strong>in</strong>as-Espírito Santo-Brasília, Paraná, Pernambuco and Paraíba, Rio de Janeiro, Santos, and SãoPaulo form a s<strong>in</strong>gle <strong>stock</strong> <strong>market</strong> on a nationwide level, with a s<strong>in</strong>gle trad<strong>in</strong>g, custody, and settlementsystem. Stocks are traded <strong>in</strong> São Paulo, while public securities are traded <strong>in</strong> Rio de Janeiro.
13Table 3: São Paulo Stock Exchange StatisticsForm <strong>of</strong> EnterpriseBOVESPANon-pr<strong>of</strong>it, self-regulat<strong>in</strong>g organizationMarket Statistics 9 EUR USDDomestic Market 2002 134.083,8 126.761,5Capitalization 2003 200.038,6 226.357,7(millions) 2004 265.579,7 330.346,62005 381.331,3 474.646,9Total Value <strong>of</strong> Share Trad<strong>in</strong>g 2002 48.974,7 46.300,2(Turnover) 2003 58.703,8 66.427,5(millions) 2004 83.602,1 103.990,12005 133.755,6 166.486,9No. <strong>of</strong> Listed Companies 2002 4122003 3912004 3882005 343Number <strong>of</strong> Trad<strong>in</strong>g Days 2002 2492003 2502004 2492005 251Average Daily Turnover 2002 196,6 185,90(millions) 2003 234,8 265,702004 335,7 417,602005 532,9 663,29Average Value <strong>of</strong> Trades 2002 7,0 6,6(Transactions) 2003 5,9 6,7(thousands) 2004 6,3 7,82005 8,6 10,7Total Number <strong>of</strong> Trades 2002 7.014,80(thousands) 2003 9.899,102004 13.383,702005 15.495,20Total Number <strong>of</strong> Shares 2002 16.652.143,00Traded 2003 26.872.599,80(millions) 2004 23.863.469,902005 c.n.a.Source: http://www.world-<strong>exchanges</strong>.org/WFE, 18/02/2006http://www.bovespa.com.br/<strong>in</strong>dexi.asp, 19/02/20069 See Appendix 1 for def<strong>in</strong>ition and calculation methods <strong>of</strong> the WFE
- Page 1 and 2: MARKET ARCHITECTURE OF SELECTED STO
- Page 3 and 4: ITABLE OF CONTENTSList of Figures .
- Page 5 and 6: IIIList of Figures 1Figure 1: Equit
- Page 7 and 8: VTable 33: Criteria for Auction Ext
- Page 9 and 10: 11 Introduction1.1 Motivation and O
- Page 11 and 12: 3Figure 2: World Equity Market Capi
- Page 13 and 14: 51.2 Course of ExplorationThis thes
- Page 15 and 16: 72.2 The selected Stock ExchangesHa
- Page 17 and 18: 92.2.2 The National Stock Exchange
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- Page 23 and 24: 15Table 4: Shanghai Stock Exchange
- Page 25 and 26: 17Table 5: Istanbul Stock Exchange
- Page 27 and 28: 19Table 6: Warsaw Stock Exchange St
- Page 29 and 30: 212.3 Organizational StructureTable
- Page 31 and 32: 232.5 Exchange RatesFor the purpose
- Page 33 and 34: 25compensation of this service, the
- Page 35: 273.3.2 Brokered MarketsIn a broker
- Page 38 and 39: 30price and quantity (Cohen and Sch
- Page 40 and 41: 32However, the impact of electronic
- Page 42 and 43: 343.6 Orders and Order Books3.6.1 T
- Page 44 and 45: 36“Minimum Fill” (or “Minimum
- Page 46 and 47: 38Figure 9: Order RoutingExchangeEx
- Page 48 and 49: 40Figure 11: Order Book in an Order
- Page 50 and 51: 42all exchanges. Generally, more th
- Page 52 and 53: 44and decide if a parallel trading
- Page 54 and 55: 46groups of similar liquidity (see
- Page 56 and 57: 48Order TypesGenerally, there are t
- Page 58 and 59: 50The Trading DayTable 18: Opening
- Page 60 and 61: 52Matching and uncrossingAs already
- Page 62 and 63: 54Figure 14: Volatility Bands at th
- Page 65 and 66: 57Table 24: Market Types and Order
- Page 67 and 68: 59The three stages of price variati
- Page 69 and 70: 61according to price/time priority
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63The Trading DayTable 29: Opening
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65Additionally, there are special a
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67Table 34: Discretionary Trading H
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69Order Entry ParametersThe rules o
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71Trading unitsPrices of B-shares o
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73Market ParticipantsISE members au
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75The Trading DayTable 39: Opening
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774.6 The Warsaw Stock ExchangeIn t
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79Must-be-filled orders can be plac
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81Figure 19: Trading Phases of the
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83executable at a determined price
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854.7 The Dubai International Finan
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88The Trading DayTable 52: Opening
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905 ConclusionThe ever-increasing n
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92Table 56: Synoptical Table of Mar
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94Trades effected through the Elect
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967 ReferencesLiteratureBARUCCI, E.
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98GIRIDHAR, G., 2004. Market Micros
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100PECHLANER, V. M., 2001. An Analy
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102EIDESSTATTLICHE ERKLÄRUNGIch er