Computers are machines that can handle a certain load.
Closing is not as much of a load as you might think, since it only has to calculate a price and match orders. There are no new orders continually being added.
As for opening, the ASX has to cater for the worst case scenario. So, I would guess that Monday’s opening on average would have the greatest load, because weekend traders would be putting their orders in before open.
On open, if everything started at once, the machines would have to deal with price discovery, matching orders, and new orders all at once for the whole XAO share pool. To me, as an ex-programmer that sounds like an awful lot.
So staggering the load, by introducing new groups of shares makes good sense to me.
Also remember, they have to cater for worst case scenario of high volume days, so it’s probably just easier to stagger the open every day.
What I find strange is that the early opening shares get 10 minutes more of trading per day than the late opening shares. How come they don’t do a staggered close?
Probably just to make simple rules for everyone!
my thoughts.
regards,
John
WBC Price at posting:
$20.88 Sentiment: Hold Disclosure: Held
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