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This page provides examples of EBS Price Discretion order type behavior. 

Price Discretion Order

A Price Discretion (PD) order allows an order to match up to (bid) or down to (ask) a discreet Limit price while showing a given Limit price to the market. 

  • The discreet price for a bid must be greater than the shown Limit price, else the order will be rejected (e.g. Bid limit 50 with PD 55).
  • The discreet price for an ask must be less than the shown Limit price, else the order will be rejected (e.g. Ask limit 50 with PD 40).
The discretion price is not published on market data.

Price Discretion is available for Limit orders having the following order qualifiers:

  • Good for Session (GFS)
  • Display Quantity (DQ)
PD is not available for FAK/FOK orders.

Price Discretion Order Matching Process

When an aggressing order arrives to the order book, CME Globex will attempt to match orders as follows:

First Pass - match resting orders according to Limit price-time priority.

Second Pass - booked PD orders aggress incoming quantity according to time priority.

A booked order having a discreet order price, if encompassing the incoming order price, will match at the incoming order price.
The following examples show market price levels in PIPs, i.e., a price of 1.22150 is shown as '50'.

Example 1: Price Discretion Orders on Book

First Pass

Incoming ask at limit price 55 does not match resting bid at limit price 50 – No Match

Pride Discretion Booked

Second Pass

  • Resting bid at PD 60 from Order 2 aggresses incoming ask at limit price 55 – Match 10 @ 55
  • Resting bid at PD 70 from Order 3 aggresses incoming ask at limit price 55 – Match 5 @ 55
Opposite side Limit prices did not match, so resting order PD aggresses the incoming order's Limit price.

Price Discretion Resting II

Market following match event:

Example 2: Incoming Price Discretion Order

Starting market with incoming Sell Price Discretion order.

Price Discretion Incoming I

First Pass

Incoming ask at PD 40 matches resting bid at limit price 50 – Match 10 @ 50.

Price Discretion Incoming II First Pass

In the example above, even though Order 2 and Order 3 have better PD prices than Order 1, Order 1 has time priority and matches.

Second Pass

Resting bid at PD 60 from Order 2 aggresses incoming ask at PD 40 – Match 5 @ 40.

An incoming Limit-PD order is designated the Aggressor, even though the PD resting bid is aggressing.

Price Discretion Incoming Second Pass

Market following match event:

Price Discretion Incoming Post Match

Example 3: Incoming Price Discretion Order with Booked Price Discretion Orders

Starting market with incoming Sell Price Discretion order.

Price Discretion Incoming 3

First Pass

Incoming ask at PD 30 does not match resting bid at limit price 10 – No Match.

Price Discretion Example 3 First Pass

Second Pass

  • Resting bid at PD 40 from Order 1 aggresses incoming ask at PD 30 -- Match 1 @ 30
  • Resting bid at PD 60 from Order 2 aggresses incoming ask at PD 30 -- Match 9 @ 30
In the example above, even though Order 2 and Order 3 have better PD prices than Order 1, Order 1 has time priority and matches.

Price Discretion Example 3 Second Pass

An incoming Limit-PD order is designated the Aggressor, even though the PD resting bid is aggressing.
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