Is the entire quantity (hidden and visible) executable during an Auction?

Is the entire quantity (hidden and visible) executable during an Auction?

• A. No
• B. Only visible portion
• C. Yes
• D. Only if pre-open

Answer: (C)

In an Auction, the matching engine combines all interest at once to determine a single clearing price, using both visible orders and hidden (iceberg) quantities. Because the cross is built from the total demand and supply, the entire quantity that can be traded at the clearing price—including the hidden portion—is eligible to be executed. So the hidden quantity participates in the match just like the visible one, provided there is counterpart quantity on the other side at that price. If there isn’t enough opposite-side quantity, not everything may fill, but the mechanism allows the hidden part to be executed when matching occurs.

In an Auction, the matching engine combines all interest at once to determine a single clearing price, using both visible orders and hidden (iceberg) quantities. Because the cross is built from the total demand and supply, the entire quantity that can be traded at the clearing price—including the hidden portion—is eligible to be executed. So the hidden quantity participates in the match just like the visible one, provided there is counterpart quantity on the other side at that price. If there isn’t enough opposite-side quantity, not everything may fill, but the mechanism allows the hidden part to be executed when matching occurs.