All trading activity on ESX listed securities occurs via ESX’s Automated Trading System (ATS). ESX adopts a hybrid market that provides both a central limit order book as well as platforms for bilateral and multilateral negotiated trading in the form of Requests for Quotes (RFQs). ESX’s central limit order book allows trading members and their clients to enter buy and sell orders anonymously where customer trades are executed using ESXs’ modern trading engine based on a transparent price-time priority mechanism of trade matching.

The ATS seamlessly integrates with the CSD that ensures efficient clearing and settlement.

○Market Opening: Trading on ESX begins with an opening auction. During this phase, buy and sell orders are matched, and the opening price for each security is determined.

○ Order Placement: Investors place buy and sell orders with their brokerage firms or directly via direct market access facilities. Among others, orders can be market orders (executed at the prevailing market price) or limit orders (executed only at a specified price or better).

○Order Matching: ESX uses electronic trading systems to match buy and sell orders. Orders are executed based on a price-time priority, meaning the first order at a specific price gets priority.

○Continuous Trading: Once the market opens, continuous trading takes place, with buy and sell orders executed throughout the trading day. Prices fluctuate based on supply and demand.

○ Market Surveillance: ESX utilizes various surveillance mechanisms to monitor trading activity and detect unusual or suspicious behavior. This helps maintain market integrity and prevent market manipulation.

○Trading Halts: Trading may be halted under certain conditions, such as extreme volatility, technical issues, or significant news events. Halts are designed to maintain order and stability in the market

○ Clearing and Settlement: After trades are executed, the Central Securities Depository, ensures that trades are settled by transferring securities and funds between buyers and sellers.

○Post-Trade Reporting: The exchange reports executed trades and trade data to participants and the public. This data includes the trade price, volume, and other relevant details.