The Dubai Financial Market (DFM) utilizes precise rules to calculate the theoretical auction price during pre-closing sessions to ensure market transparency and fairness. According to the CISI UAE Financial Rules and Regulations and DFM official trading manuals, when the mid-point price is used in price determination, it is roundedupto the nearest price tick. This rounding mechanism ensures consistency in pricing and avoids fractional pricing issues that could disrupt the matchingof buy and sell orders. The concept of a price tick is a minimum price movement allowed in trading, defined by the market’s tick size schedule. By rounding up, the market supports price stability and protects sellers during the auction process. This is explicitly stated in DFM’s trading rules section regarding auction price calculation and tick size adjustments.
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit