2AProcessing algorithm

2A Processing algorithm

 (1) In this Schedule, 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 steps:

Step 1: collects all the increase bids and decrease bids requested by bidders for lots of each product in the clock round.

Step 2: calculates the price point of each increase bid and each decrease bid.

Step 3: sorts all the increase bids and decrease bids, in ascending order, based on the price point of each bid, to form a queue of bids.

Step 4: sorts any bids in the queue with equal price points using a pseudorandom process.

Step 5a: processes the bids to determine if the first bid in the queue is to be applied in full, applied in part, or rejected.

Step 5b: if the bid is applied in full, deletes the bid from the queue and returns to Step 5a.

Step 5c: if the bid is applied in part, modifies the bid by removing the part of the bid that is applied and leaving the remainder of the bid in its place in the queue, and returns to Step 5a.

Step 5d: if the bid is rejected, leaves the bid in its place in the queue and determines if the next bid in the queue is to be:

(i)            applied in full, and if so, returns to Step 5b; or

(ii)         applied in part, and if so, returns to Step 5c; or

(iii)       rejected, and if so, this Step 5d is recursive.

Step 6: stops processing bids if:

(i)            a bid is rejected and there is no next bid in the queue; or

(ii)         there is no bid remaining in the queue.

Step 7: determines:

(i)            the posted price for the lots of each product for the clock round in accordance with subclause (6); and

(ii)         the posted demand for each bidder for the lots of each product for the clock round in accordance with paragraph 2B(6)(a) or 2C(6)(a), as the case may be.

Note: Clause 2B deals with increase bids. Clause 2C deals with decrease bids. For posted demands for maintain bids, see clause 2D.             

Step 8: calculates the eligibility points of each bidder for the next clock round in accordance with paragraph 12(1)(b) and subclause 13(2).

 (2) In relation to Step 1, a maintain bid is:

(a)      not collected by the processing algorithm; and

(b)      always applied in full in accordance with clause 2D; and

(c)      taken to be at the posted price for the current clock round.

 (3) For Step 5b:

(a)      an increase bid is applied in full in accordance with the relevant subclauses in clause 2B;