Which sequence describes CLOB trading phases?

Which sequence describes CLOB trading phases?

• A. Pre-opening, opening, continuous trading, close of trading with or without closing auction, post-trading
• B. Opening dispute phase, mid-day lull, end-of-day settlement, night session
• C. Initial public offering phase, post-IPO phase, stabilization period, delisting
• D. Pre-market, after-hours trading, settlement

Answer: (A)

In a Central Limit Order Book, trading unfolds through a defined day sequence that supports orderly price discovery. It begins with a pre-opening phase where orders are entered and accumulated, and the opening phase then determines the opening price through an auction. After opening, continuous trading takes place as orders are matched in real time. At the close, there is a close of trading, potentially with a closing auction to set the final price, followed by post-trading activities like settlement and clearing. This sequence matches the option describing Pre-opening, opening, continuous trading, close of trading with or without closing auction, post-trading. The other options mix in IPO-related phases, disputes, or after-hours sessions that are not part of the standard CLOB daily sequence.

In a Central Limit Order Book, trading unfolds through a defined day sequence that supports orderly price discovery. It begins with a pre-opening phase where orders are entered and accumulated, and the opening phase then determines the opening price through an auction. After opening, continuous trading takes place as orders are matched in real time. At the close, there is a close of trading, potentially with a closing auction to set the final price, followed by post-trading activities like settlement and clearing. This sequence matches the option describing Pre-opening, opening, continuous trading, close of trading with or without closing auction, post-trading. The other options mix in IPO-related phases, disputes, or after-hours sessions that are not part of the standard CLOB daily sequence.