The transaction price when trading Depository Receipts is set by means of an auction method. During this auction buy and sell orders are collected. The Market analyzes these orders and looks at the price levels at which the largest volume of orders can be executed. This means the Market tries to set the price at the level where as many Depository Receipts as possible can be traded.
For example, imagine different buy and sell orders for different price levels. The Market will set the price at the level for which the largest number of Depository Receipts can be traded.
During the auction, buy and sell orders with different price limits are submitted. Let us assume that €50 is the transaction price at which most Depository Receipts can be traded.
In that case, there may also be buy orders with a price limit higher than €50, say €55, and sell orders with a price limit lower than €50, say €45.
The Market analyzes all orders and looks for the price for which the largest number of Depository Receipts can be traded. In this example the Market will set the price at €50, because this is the level at which the largest volume can be traded.
This means that buy orders with a limit higher that €50, say €55, will also be included in the settlement of the auction. The same applies to sell orders with a limit equal to or lower than €50, say €45.