ABOUT FRANKFURT AUCTION
/KASE, February 28, 2022/ – Kazakhstan Stock Exchange (KASE) informs you
that today, February 28, trading in the instrument USDKZT_TOM is supposed to
be held from 15:00 o'clock, Nur-Sultan time, using the Frankfurt auction
The Frankfurt auction method involves determining the time period of the
"auction window", during which market participants can submit orders to buy and
sell a financial instrument at prices and in volumes that they consider
acceptable and fair. During this period of time, any market participant can
freely submit and withdraw any number of orders to buy or sell. Participants
are informed in advance about the duration of the "auction window", as well as
about the duration of the final period of the auction, during which it closes
at a random moment.
The weighted average rate based on the results of the auction is set as the
value of the price at which the largest volume of orders submitted during the
auction can be executed.
Thus, the mechanism of the Frankfurt auction is a tool for objective
determination of the equilibrium value of the financial instrument rate at a
certain point in time.
This mechanism is widely used in exchange trading and is used for closing and
opening auctions of trading in financial instruments; it is a mechanism for
determining the prices of instruments during periods of high volatility.