Itaawase/zaraba, etc.

[steve henderson]

Does anybody know how to render 板合せ, 引板合せ and ザラバ into English? A
nice explanation regarding these can be found at
www.tocom.or.jp/jp/nyumon/kojin/overview06.html . By reading
http://www.orient-trade.co.jp/english/marketinfo.htm , I am under the
impression that 板合せ and ザラバ are both trading methods unique to the
Japanese commodity markets and, therefore, their names are simply
Romanized, leading to 'itaawase method' and 'zaraba method.' I'm not
at all familiar with the markets, so I don't have the slightest idea
whether this is correct or not, and I haven't found anything
indicating a proper English rendering of 引板合せ.
Can somebody tell me the best way to render these into English? Thank
you.

Also,

SH

[William Sakovich]

It was itaawase and not itayose?

At any rate, some notes that I took long ago, with differing views:
*****
"Itayose method" = "call auction" "Zaraba method" = "continuous auction" But
“Itayose" and "Zaraba" are widely used in English. 「板寄せ」は通常
"netting"です。東証の前場の寄り付きに限らず、板寄せは金融・商品先物などでも
幅広く応用されています。Netting: the process at market opening (between the
Pre-opening and Trading Periods), during which excutable futures or options
orders are executed at the opening price.

Japanese definition of zaraba:

寄り付きと引けに、板寄せが行われるが、その間、立会い期間中は売り方、買い方と
もに相互に相手方をみつけて継続してばいばいする。この売買を継続売買またはザラ
バという。

- BS

[Terry Gallagher]

I am not an expert on this sort of market arcana, but I too think itayose was meant here.

 

A site called Investopedia offers the following:

Itayose:

A clearing method used by Japanese commodity exchanges to set prices. It is a form of auction market in which the time of order entry is not distinguished, and an opening price is derived on the principle of price priority requiring that the following occurs:

1. All market orders are executed first.
2. Next, all limit orders are executed to sell/buy at prices lower/higher than the execution price.
3. Finally, the following amounts of limit orders to sell or buy are at the execution price: 
          - the entire amount of all either sell or buy orders, and
          - at least one trading unit from the opposite side of the order book.

This is a modified version of the Walrasian market. Staff at exchanges that implement the itayose method will post a provisional price to floor members. These members then submit buy and sell orders to the staff, who subsequently analyze the orders to adjust the provisional price. This process is repeated until a price matches all the buy and sell orders placed by the floor members, clearing all trades.

 

Zaraba:

A method of matching orders that involves using an auction-like process to trade securities. The orders are organized by both their prices and the time that they were taken. As soon as an order for a security is delivered, it is compared and matched with orders already in the order book. When a bid comes in that matches the price requested by another order, the two orders are executed and taken out of the order book.

The zaraba method is most often associated with the Japanese stock exchanges. Typically, the zaraba method is used during normal trading sessions, whereas a different order matching method, which is called the itayose method, is used to determine the opening and closing prices for each morning and afternoon trading session. 

 

I realize these do not give you concise terms, which Bill has already provided, but I thought the explanation of the process was worth noting.

 

Hope helps.

Terry Gallagher

Eastham, MA USA

 

[Alan Siegrist]

William Sakovich writes:

> It was itaawase and not itayose?

It is possible that "itaawase" is not a mistake.

See:
http://www.orient-trade.co.jp/english/marketinfo.htm
| Zaraba (Continuous Session) Trading
| Zaraba Trading is the trading method where orders are continuously
| executed when the price and numbers of lots match. Under the Zaraba
| Trading, there will be many settlement prices during the trading hours,
| except for the opening and ending sessions where another trading method
| called Itaawase Trading may be used. The Itaawase Trading method is
| similar to Itayose Trading, but instead of matching the number of bids
| and offers, a single price will be settled on at the maximum number of
| bids and offers from among all the bids and offers.

Regards,

Alan Siegrist
Orinda, CA, USA

[Murdoch MacPhee]

板合せ: Itaawase trading (single price without bid-number matching)
板寄せ: Itayose trading (single price with bid-number matching; periodic
call auction)
ザラバ : Zaraba trading (continuous double auction)
寄板合せ: opening Itaawase
引板合せ: closing Itaawase

These are some possibilities. I would definitely use the terms Itaawase
and Zaraba (and Itayose if it comes up)... how much additional
information I'd include would depend on the purpose of the piece.

Murdoch MacPhee

[steve henderson]

Thank you Bill, Alan, Terry and Murdoch. Your kind help is sincerely
appreciated.

SH

[Oftebro Tim]

HI Steve,

Itaawase and Zaraba are unique to Japan, but are fundamentally an auction type system as you already know.
So you are on the right track using Itaawase and Zaraba in Romaji.
For 引板合せ, the term would be "closing Itaawase". Be careful of how its used in context. You may need to the words "trading" on the end. I have had this term verififed by TOCOM several years ago.

Regards,
Tim Oftebro