TMX Group has launched the new TSX Market on Close (MOC), a facility designed to enable investors to source liquidity and participate in trades at the closing price.
The new features of the enhanced MOC facility are aimed at providing clients with an improved trading experience, and delivering benefits to the broader Canadian capital markets ecosystem with increased efficiency in determining end-of-day valuations for eligible Toronto Stock Exchange (TSX) and select TSX Venture Exchange (TSXV) listed issues.
“We are proud to introduce the new and improved TSX MOC, an adaptive response to industry needs and a significant step forward in ensuring Canada’s markets remain transparent, liquid and globally competitive,” says Rizwan Awan, President, Equities Trading and Head of TMX Markets, Products & Services, TMX Group. “The enhanced, modernised TSX MOC model is the culmination of two years of dedicated work by our team in close collaboration with a wide range of participants across our client community, and we are confident that the new features will reap wide-reaching and long-lasting benefits.”
Introduced in 2004, the TSX MOC facility operates as an electronic call market, providing equal access and opportunity for investors looking to source liquidity and participate in trades at the closing price. TSX MOC also plays a vital role in Canada’s markets by providing efficiency and accuracy in setting the TSX Closing Price and TSXV Closing Price closing price for eligible listed issues.
The new TSX MOC model introduces three high level changes, each designed to address issues of transparency, alignment with global markets, and consistency of execution:
Enhanced transparency by increasing depth of detailed information and frequency of communication regarding Imbalances.
Newly defined MOC Imbalance market state to align with global models.
Additional MOC Freeze market state to mitigate volatility and help prevent unexpected price and imbalance movements.
