How does an auction of Triodos Depository Receipts operate?

Important note: this description may in no way be construed as an advice to invest, but is of an informative nature only. In addition, prices mentioned herein are fictitious.

In this section we will explain how a transaction price is established via the auction in Triodos Depository Receipts.

As laid down in the Trading Rules (Trading Rules – Captin), there is a period when orders are submitted, called the 'Auction Round", and a period when the auction is executed and settled, called the 'Trading Round'.

Auction Round

During de Auction Round investors who have become customers of Captin can submit their orders. All orders submitted must have been placed with a specified price limit. This price limit is the maximum price you are willing to pay for a Depository Receipt, in case of a purchase. In case of a sale, the price limit is the minimum price you want to receive for a Depository Receipt. Orders submitted are included in the so-called order book. However, the order book displayed on the website shows only the ten highest bid prices and the ten lowest ask prices with the corresponding volumes. The actual order book may therefore be larger than the displayed ten bid or ask prices. Also, there may be orders with (much) larger volumes, which are not shown as their bid or ask price is not one of the ten highest. See below Example  - total order book (including the top 10).

See below Example  - total order book (including the top 10 orders).

(Important: In the example below, we assume fictitious prices and volumes)

During the Auction Round, the following orders were submitted in the columns below. For Demand and for Offer, the price column displays the price limit specified.

In the blue outlined area, you can find the top 10 orders displayed at the Captin website (Triodos Bank Listing | Captin) and in your trading account before you submit an order.

Trading Round

During a Trading Round, no new orders can be submitted, and existing orders cannot be cancelled.

During the Trading Round the Market determines if any buy and sell orders in the order book can be matched.

Orders are executed at the price at which the highest volume of orders can be executed. In other words:the price will be set at the level for which the highest volume of Triodos Depository Receipts can be traded. See below Example - Pricing on the largest volume of orders.

See below Example - Pricing on the largest volume of orders.

(Important: In the example below, we assume fictitious prices and volumes)

• At a price of €90, there are buyers but no sellers and no orders can be executed at all. This would lead to a volume of 0 Depository Receipts traded.  
• At a price of €100, 35,685 Depository Receipts are wanted and only 1,000 Depository Receipts offered.  This would lead to a volume of 1,000 Depository Receipts traded.
• At a price of €110, 6,285 Depository Receipts are wanted and 3,700 Depository Receipts offered. This would lead to a volume of 3,700 Depository Receipts traded.
• At a price of €126, 2,280 Depository Receipts are wanted and 10,290 Depository Receipts offered. This would lead to a volume of 2,280 Depository Receipts traded.
• As the example above shows, the largest number of Depository Receipts could be traded at a price of €110. This puts the transaction price ultimately at €110.
• This means all buy orders with a specified price limit of €110 or more, will pro rata have 58.9% (being 3,700/6,285) of their order executed.
• And this also means all sell orders with a specified price limit of €110 or less, will pro rata have 100% (being 3,700/3,700) of their order executed. Thus, a total of 3,700 Depository Receipts will be traded in the auction.
• Finally, as for all specified bid and ask prices the corresponding volume of Depository Receipts to be traded will be determined during the Trading Round, where the highest volume will determine the final transaction price, the order book of the ten best bid and ask prices shown is not necessarily indicative of the final transaction price.