The South Pacific Stock Exchange (SPX) advises the market that, with effect from 18 August 2026, a Price Setting Trade Framework will apply to all equity securities quoted on the Exchange.
Under the framework, only trades of sufficient size will determine the official reference price of a security. A trade that does not meet the qualifying size will continue to be executed and reported in the ordinary course, but will not change the official reference price of the security. The official reference price of a security will accordingly no longer change on the basis of every executed trade.
The framework does not introduce a minimum trade value or a minimum trade size, and there is no restriction on the size of orders that may be placed. Investors may continue to buy and sell parcels of any size through their licensed stockbroker. Every trade by investors executed on the market will:
- remain a valid trade;
- be reported to the market;
- settle in the normal course; and
- transfer ownership of the securities on the terms agreed between the parties.
Investors will continue to receive the price at which their trade is executed. The only change is whether a particular trade determines the official reference price of the security published by the Exchange and used for valuation, market capitalisation and index purposes.
Purpose of the Framework
Reliable price formation is a core function of a securities market. Prices published by the Exchange are used to value listed companies, calculate index levels and inform investment decisions, and should therefore reflect trading of sufficient size to be meaningful.
The framework is designed to ensure that official prices are determined by trades of meaningful size, while maintaining open access to the market for investors of all sizes. The distinction between price setting and non price setting trades is established practice in other markets, including developed markets, and supports fair, orderly and transparent trading.
How the framework will operate
In instances where a trade by investors that does not qualify as a price setting trade changes the reference price of a security, the Exchange will make a price adjustment through the matching engine to restore the official reference price to the most recent qualifying level. Price adjustments are placed by the Exchange and do not involve any investor or stockbroker.
The Exchange will apply the framework through this process as an interim measure pending implementation of its new trading system in the future, which will perform automatic adjustments.
Qualifying thresholds
The Exchange will not publish the specific thresholds that determine whether a trade qualifies as a price setting trade. This is consistent with approaches adopted in other markets and is intended to prevent transactions being structured in a manner that would undermine the objective of the framework.
Questions and Answers for Investors
What is the official reference price?
It is the price the Exchange publishes for a share, the price you see quoted for a company on the official share price list. It is used to value listed companies and calculate index levels. Until now it was simply the last traded price, regardless of how many shares changed hands. From 18 August, it will be the price of the most recent trade that was large enough.
Does this mean I need a certain amount of money to trade?
No. There is no minimum amount and no minimum number of shares. You can invest whatever you choose, and your stockbroker will execute your order as normal.
If my trade does not set the price, do I still pay or receive the price I traded at?
Yes. The trade is still counted. If you bought at $0.80, you pay $0.80 per share. If you sold at $0.80, you receive $0.80 per share. The trade is completed and reported, and the shares or the money are yours on the terms you agreed. Whether a trade sets the published reference price is a separate matter and does not change what you pay or receive.Investors with questions about how the framework affects them are encouraged to contact their licensed stockbrokers or Exchange on the 1534 toll-free line.
Further information
Investors with questions about how the framework affects them are encouraged to contact their licensed stockbrokers or Exchange on the 1534 toll-free line.
