109Applying a decrease bid

109  Applying a decrease bid

Provisional excess demand

 (1) In this section, the provisional excess demand (in number of lots of a product), immediately before a decrease bid (the current bid) for the product for a clock round is to be processed, is the sum of:

 (a) the number of lots calculated by subtracting the supply of the product from the sum of the number of lots in the start demands for the product for the clock round of all bidders (which might be zero, or a negative number); and

 (b) the difference between:

 (i) for increase bids for the product that have already been applied in full or in part—the number of lots applied; and

 (ii) for decrease bids for the product that have already been applied in full or in part—the number of lots applied;

less the demand change for the current bid.

Note: If provisional excess demand is a negative number, that indicates that there is a shortfall (rather than an excess) of demand.

Decrease bid applied in full

 (2) If the provisional excess demand, immediately before the current bid is processed, is equal to or greater than zero:

 (a) the current bid is applied in full; and

 (b) the bidder’s provisional posted demand for the lots of the product is, in number of lots, equal to:

 (i) the bidder’s start demand for the product for the clock round; less

 (ii) the demand change for the current bid; less

 (iii) if the current bid is a part of an earlier decrease bid that was applied in part—the number of lots of the product in the part of the earlier bid that was already applied.

Decrease bid rejected

 (3) If:

 (a) the provisional excess demand, immediately before the current bid is processed, is less than zero; and

 (b) the absolute value of the provisional excess demand equals or exceeds the demand change for the current bid;

 (c) the current bid is rejected; and

 (d) the bidder’s provisional posted demand for the lots of the product is, in number of lots, equal to the difference between:

 (ii) if the current bid is a part of an earlier decrease bid that was applied in part—the number of lots of the product in the part of the earlier bid that was already applied.

Decrease bid applied in part

 (a) the provisional excess demand, immediately before the current bid is processed, is less than zero; and

 (b) the demand change for the current bid exceeds the absolute value of the provisional excess demand;

 (c) the current bid is applied in part to the extent of the number of lots in the excess from paragraph (b); and