RE: Q MOC TRADE Frequently Asked Questions (FAQs)
1. Why did TMX Markets implement a Market
On Close (MOC) facility?
TMX Markets implemented a MOC facility to:
• provide equal access and opportunity in setting the closing price;
• reduce volatility at the close;
• guarantee anonymity of broker numbers and volumes in the close.
2. Who can use MOC?
MOC is accessible to all Toronto Stock Exchange (TSX) and
TSX Venture Exchange (TSXV) Participants and Sponsored
Direct Access Participants.
3. Does my trade station support MOC functionality?
All trade station functionality questions should be directed to
your trade station vendor.
4. Do I have to use the MOC facility?
No. The use of the MOC facility is voluntary.
5. Do I have to use my broker to enter my MOC orders?
No. If you have sponsored direct market access you may enter
your own MOC orders.
6. What stocks participate in the MOC facility?
All stocks included in the S&P/TSX Composite Index, S&P/TSX
Venture 30 Index, S&P/TSX Global Gold Index, S&P/TSX Global
Mining Index and S&P/TSX Small Cap Index are MOC
eligible. TMX Markets has the ability to add and delete stocks
as per request and as needed from the MOC facility.
7. What kind of orders can I put into the MOC book?
MOC market orders and limit orders can be entered into
the MOC book, subject to restrictions (see question below).
8. When can I put my orders into the MOC book?
MOC market orders can be entered into the MOC book from
7:00 a.m. to 3:40 p.m. Imbalance offsetting MOC limit orders can
be entered into the MOC book (if the symbol has an imbalance)
between 3:40 p.m. and 4:00 p.m. and potentially 4:00 p.m. to
4:10 p.m. (if the price movement extension is invoked).
9. Is there a minimum order size?
The minimum order size is one board lot (i.e. 100 shares).
10. Can I cancel or change former order (CFO) my MOC orders?
MOC market orders can only be cancelled prior to 3:40 p.m.
MOC limit orders can only be cancelled between 3:40 p.m.
and 4:00 p.m. MOC limit orders between 4:00 p.m. and 4:10 p.m.
(PME) cannot be CFO’d or cancelled.
11. Can I enter an anonymous MOC order?
Yes.
12. When is the last possible time that I can place a
MOC market order?
You may enter a Buy, Sell, CFO, or cancel MOC order up to 3:40 p.m.
At 3:40 p.m. the MOC book is locked for MOC market orders.
13. Do you publish a MOC imbalance?
A MOC imbalance is calculated and published to the trading
community at 3:40 p.m.
14. How is the MOC imbalance published?
TMX Markets disseminates MOC imbalance information at
3:40 p.m. and price movement extension information at 4:00 p.m.
on TMX.com and via the following data feeds: TBF, TL1, TL2, CBF,
CL1, CL2 and the TSX and TSX Venture Level 1 and Level 2
QuantumFeeds.
15. Why are only offsetting orders allowed during the
imbalance broadcast and blind offset session?
This session is intended to solicit offsetting liquidity. Limit
orders force market participants to enter their best price,
thereby promoting price discovery.
16. Will the offsetting MOC limit orders result in an
imbalance to be updated and rebroadcast?
No. Offsetting real-time as offsetting orders entered into the
MOC book have a limit price that may or may not trade when the
books are combined and therefore do not change the imbalance.
a facility of TMX Markets for handling MOC orders.