Good Till Date (GTD) Order Recycling

There are two order validities available to investors on Euronext’s Structured Products pan-European MTF (Euronext Access Paris):

• Day order: valid only for one day. If not fully executed, a Day order is cancelled at the end of the trading day for which it is valid.
• Good Till Date (GTD) order: the investor can choose a validity date between 1 and 365 days. If not fully executed, a GTD order stays valid until:
  • It is fully executed
  • It is cancelled
  • It reaches its validity date.

Good Till Date (GTD) orders are very popular with investors on Euronext’s Structured Products pan-European MTF (Euronext Access Paris). On average, nearly 30% of all orders sent by investors are GTD orders, with an average validity of more than 70 days. 

GTD orders allow investors to keep orders active for long periods of time instead of having to resubmit the same orders every day:

• Buy orders: investors can submit GTD Buy orders for the purpose of buying an instrument if/when its price goes down to a specific level
• Sell orders: investors can submit GTD Sell orders for the purpose of selling instruments they already have in their portfolio if/when their price goes up to a specific level
• Stop-On-Quote Buy orders: investors can submit GTD Stop-On-Quote Buy orders for the purpose of buying an instrument if/when its price goes up to a specific level (which could be seen as an indication that the price could go much higher) 
• Stop-On-Quote Sell orders: investors can submit GTD Stop-On-Quote Sell orders for the purpose of selling instruments they already have in their portfolio if/when its price goes down to a specific level (which could be seen as an indication that the price could go much lower) .

Until now, Good Till Date (GTD) orders had a validity date. With GTD Order Recycling, GTD orders now also have a daily validity time.

This is particularly useful for trading members who do not participate in Extended Trading Hours (ETH) (see Extended Trading Hours for more information).

GTD orders from trading members not participating in ETH are valid until 18:30 CET, while GTD orders from trading members participating in ETH can be valid until 20:00 or 22:00 CET.

GTD orders with a daily time validity earlier than the closing time of the Warrant or Certificate will now be ‘recycled’ once their daily validity time is reached. This process involves the following steps:

• GTD orders with a daily time validity earlier than the closing time of the Warrant or Certificate will be removed temporarily from the orderbook once their daily validity time is reached. Trading will continue between other trading members participating in ETH until the closing time of the W&C
• After the market close, and before the start of trading on the next trading day, recycled GTD orders that have not reached their validity date will be reintroduced in their respective orderbooks and become active again.
• Recycled GTD orders will retain their price/time priority. After a GTD order #1 has reached its daily time validity and has been removed from the orderbook, if a new order #2 with the same price limit has been submitted to the market, the recycled GTD order #1 will take its priority over order #2 on the next trading day, it was originally submitted to the market before order #2. 

It is important to note that once a GTD order has reached its daily time limit and has been removed temporarily from the orderbook, it is no longer active and can no longer be matched during the remaining of the trading day, even if its price limit is reached. The GTD order will become active again from the start of the next trading day.

Good Till Date (GTD) Order Recycling is a feature fully managed by Euronext for all instruments traded on Euronext’s Structured Products pan-European MTF (Euronext Access Paris). It is therefore available to all trading members who are connected to this market.

If your retail broker or distributor offers access to Extended Trading Hours (ETH) until 22:00 CET, your GTD orders will not need to be recycled, since their daily time validity will always last until the closing time of each Warrant or Certificate (see Extended Trading Hours for more information).

If your retail broker or distributor does not offer access to Extended Trading Hours (ETH), the time validity assigned to your Day and Good Till Date (GTD) orders is 18:30 CET.

If your retail broker or distributor offers access to ETH, it can choose:

• to allow its clients to set their own daily time validity for each order (either 20:00 or 22:00 CET).
• to set the same daily time validity for all its client orders (either 20:00 or 22:00 CET).
  We suggest that you contact your retail broker or distributor and ask if they offer access to ETH, and if so, whether they allow you to set your own daily time validity (either 20:00 or 22:00 CET).