1

Greetings to the community.

I am a newbie in stock exchange rituals and i have spotted a regular high volume transaction at market close in a stock that i have in my watchlist. I find both the volume and the bidding price kind of irregular.

enter image description here

  1. Who could be the buyer that makes this kind of transaction ? Fund ? An institution ?
  2. Why is he buying at a higher price than he could be buying ? Trying to set next days opening price ? Is this some kind of a technique ?

UPDATE

  1. I have searched investopedia towards the directions Bob pointed out and i think that these mysterious (not so more) transactions must take place at the closing auction. Is this correct? Bloomberg also indicates this as a wordwide trend

  2. Other than the Market-On-Close (MOC) transaction, could the following types of transactions be more fitting ? Limit-On-Close (LOC), Imbalance Only (IO), Closing Offset.

  3. I have also found transactions (of another day) showing a detailed view of a mysterious transaction. What could be the instr phase feed codes ? Does C,P,A codes ring any bells?

  4. As i point out in the picture below, the sum of the transactions after the market close sums up to the number i see on the graph. Any explanatins on the ask and bid prices? If you want to see today's transactions you can visit this.

    Detailed Transactions after Market Close

7

It's possible that what you are seeing is a market-on-close order (MOC). These are often used by:

  • ETFs who are adjusting a price imbalance b/t share price and value

  • Mutual funds who are raising or freeing up cash due to purchases or redemptions

  • Day traders who want to be flat at the end of the day

  • 2
    Thanks Bob for your time, could you please be more specific on "Day traders who want to be flat at the end of the day"? What do you mean exactly with "flat" and which way is this achieved? – NickAth Nov 28 '19 at 19:48
  • 1
    @NickAth 27 - Sorry about for the unclear lingo. At the risk of compounding the error, a true day trader is 'clean and green at the end of the day'. IOW, he closes all positions by the close of trading and is back in cash with no overnight risk. 'Flat' refers to holding no overnight positions. – Bob Baerker Nov 28 '19 at 20:21
  • Hi Bob, as you can see I have made further research on the topic which led to more questions described in the updated part of the question , could you please follow up? :) – NickAth Dec 9 '19 at 18:15
  • I don't have much to offer for your follow up. It's a foreign market so I have no clue (I'm US). I have no idea what Instr Codes are (search that web site and maybe that of the stock exchange for an answer). The bid price being higher than the ask price makes no sense whatsoever. I could guess bad data. If this was the US, could also guess that some of these large trades are off exchange OTC trades being reported after the close. Sorry that I can't help any more than guessing. – Bob Baerker Dec 9 '19 at 18:52

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.