CLOSING CROSS

Price discovery mechanism on the Nasdaq crossing buy and sell orders at a single price at the end of a trading session. Traders can execute orders, both limit and market orders, at the final closing price. It sets the Nasdaq Official Closing Price (NOCP) for Nasdaq-listed securities. NOCP serves as the benchmark prices across the industry for computing mutual fund net asset values (NAVs) and index valuations.

The process starts at 4:00 p.m. EST and ends at five seconds past 4:00 p.m. EST. Same with the opening cross, it is open to all securities listed on the NYSE, NYSE Amex, NYSE Arca, and Nasdaq exchanges. Aside from price discovery and transparency, it also gives an avenue to resolve other imbalances which emerge in crucial events including index rebalances, and expiration dates for index futures and options.

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