107Processing algorithm

107  Processing algorithm

 (1) In this Division, the processing algorithm is a method in the auction system, that is given effect immediately after the end time of a clock round, that performs the following functions:

 (a) processes the increase bids and decrease bids for the clock round;

 (b) calculates the posted demand for each bidder for the lots of each product for the clock round in accordance with subsection (6);

 (c) calculates the posted price for each lot of a product for the clock round in accordance with subsection (8).

 (2) The processing algorithm processes the increase bids and decrease bids according to the following principles:

 (a) sections 108 (for increase bids) and 109 (for decrease bids) apply in processing each bid;

 (b) the order of processing the bids is determined by sorting the bids into a queue, in ascending order, based on the price point of each bid (so that the bid with the lowest price point is processed first) (see subsection (4));

 (c) the order for bids with equal price points is determined using a pseudorandom process;

 (d) if a bid is applied in full, it is removed from the queue;

 (e) if a bid is applied in part, the applied part of the bid is removed from the queue and the unapplied part of the bid is left in its place in the queue;

 (f) after processing a bid, the algorithm moves to the bid that is at the front of the queue (subject to paragraph (g));

 (g) if a bid is rejected it is left in its place in the queue, but the algorithm moves to the next bid;

 (h) the algorithm stops processing bids once all bids in the queue have been processed, or if a bid is rejected and there is no next bid in the queue.

 (3) If an increase bid or a decrease bid (the earlier bid) for the clock round was processed in part at a time in the processing of bids, then a reference in this Division to an increase bid or decrease bid (as the case requires) includes a reference to the unapplied part of the earlier bid that was left in its place in the queue in accordance with paragraph (2)(e).

Price point

 (4) In this section, the price point, for a bid for a lot of a product for a clock round, is:

 (a) the difference between the bid price and the opening price;

divided by

 (b) the difference between the clock price and the opening price.

Demand change

 (5) The demand change is:

 (a) for an increase bid—the number of lots in the excess from paragraph 103(4)(b) for the bid; or

 (b) for a decrease bid—the number of lots in the shortfall from paragraph 103(6)(b) for the bid; or