Presently market open state finishes at 4:00pm, with a Closing Single Price Auction (the closing price for the day for any given stock) taking place between 4.10 and 4.11pm. This is an important feature of trading as many market-related instruments use the closing price on any given day – for example it may be used to set the price for the equity component of an asset sale to a listed entity or for the price in a dividend reinvestment plan.
The Post Close trading session is a new continuous trading period, at the end of the day, allowing additional liquidity to be traded at the Closing Single Price Auction. Transactions in the closing auction currently represent over 20% of the entire day’s liquidity. The new post-close trading session will help brokers and clients source any liquidity they may have missed in the close.
