HKSE has Close-in-price rule for limit orders

[thecoder]

The Hong Kong Stock Exchange (HKSE) has this rule for limit orders
https://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchange#Trading_characteristics

There is a close-in-price rule for limit orders, which must be within 24 ticks of the current price. Individual brokers may impose an even stricter rule; for instance, HSBC requires limit orders to be within 10 ticks of the current price.

Does this mean limit orders sent shortly before the market closes, or does it mean throughout the whole day? What about GTC limit orders?

See also https://en.wikipedia.org/wiki/Tick_size

 

[arturo100]

The Hong Kong Stock Exchange (HKSE) has this rule for limit orders
https://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchange#Trading_characteristics

Does this mean limit orders sent shortly before the market closes, or does it mean throughout the whole day? What about GTC limit orders?

See also https://en.wikipedia.org/wiki/Tick_size

What is the rationale behind such a rule?

 

[thecoder]

What is the rationale behind such a rule?

Yeah, I too am trying to understand.
I guess to prevent manipulation of the closing price at market close, since the closing price serves also in other "measurements" etc., ie. is an important value that should not be manipulated with mass orders shortly before market close...
But I could be wrong... Maybe someone else can say more about it.