SEC deals blow to NYSE and Nasdaq with ruling on 4pm closing trades

[qlai]

Just to be clear - MOC supposed to guarantee fill.

 

[dinn13]

Because, unlike the auctioning exchange, CBOE may not modify the closing price. So if CBOE received 1m buy and 2m sell shares, they can cross 1m at closing price. What will they do with the other 1m sell shares?

The other 1 M shares will be cancelled back. The idea is that if one gets a fill it will be cheaper than going to nyse/nasdaq but if you don't then just send the residual to the primary exchange.

JPM (JPBX ats) and Posit have very similar agency close cross offerings that work the same way although with different cutoffs for sending orders/matching.

 

[qlai]

The idea is that if one gets a fill it will be cheaper than going to nyse/nasdaq but if you don't then just send the residual to the primary exchange.

So hardly a "blow" to primary exchanges.

 

[d08]

So hardly a "blow" to primary exchanges.

It might be. As I understand since the cutoff is 15:35, you will know how much was matched at that time and the remainder you resubmit to the main exchanges. That makes it a no-brainer to use with instant savings.