As previously communicated on February 20, 2009, the NYSE will begin enhanced MOC/LOC handling on Monday March 9, 2009. This initiative is designed to attract stabilizing liquidity to listed issues with significant imbalances at the end of the trading day while ensuring automatic compliance with Exchange rules governing submission of MOC/LOC orders.
The NYSE offers an optional service that rejects every order entered after 3:40 PM with an MOC or LOC instruction attached, whether the order is offsetting a published imbalance or adding to it. This optional service is being eliminated and will be disabled for all member firms this weekend, prior to the March 9 start date. The new service will accept only those MOC and LOC orders entered after 3:40 PM that are on the contra side of a published regulatory imbalance and will reject all MOC/LOC orders that attempt to join the same side of the published imbalance. NYSE systems will also begin rejecting all cancel requests sent after 3:50 PM for any previously entered MOC and LOC order, including orders that were entered to offset a previously published imbalance.
Category: Product News
