During a trading session, if an order is not fully executed, then:
A.
the order will be dealt with at the next trading session
B.
the transaction is executed at the price set on the other side of the transaction
C.
the remaining unexecuted volume is cancelled and a new order is placed, at the last executed price
D.
the remaining unexecuted volume stays on the trading system, at the last executed price
The Answer Is:
D
This question includes an explanation.
Explanation:
In the Dubai Financial Market (DFM) and other UAE exchanges, if an order is not fully executed during a trading session, the remaining unexecuted volume remains on the trading system at the last executed price, subject to the order’s validity instructions (e.g., good-till-cancelled). This approach allows the unfilled portion to remain active in the market for potential matching with future opposing orders, supporting liquidity and order continuity. Orders are not automatically cancelled or deferred to the next session unless specified. This process ensures transparency and orderly execution consistent with regulatory trading rules.
[Reference: CISI UAE Financial Rules and Regulations — Trading Order Execution Rules, Section 7.2.8 (2023)., ]
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