Market on Close

Algorithm that seeks to match the closing price on the date of the trade. This may also be referred to as a ‘Target Close’ algorithm. Market on Close will, if volume is expected to be sufficient to match the order the algorithm, participate in the end-of day auction process if allowed by the market. The Target Close algorithm will typically start to trade towards the close and participation will be effected by market movements towards the close. The algorithm will start as late as possible, subject to sufficient volume, to minimise deviation from closing price. In some cases the user can set a ‘trajectory’ into the close.