The New York Stock Exchange closing auction is the single largest liquidity event of the day – trading $18.9 billion per day, on average, and representing about 7% of daily volume in NYSE-listed securities.
The NYSE closing auction is the primary liquidity event for institutional and retail investors. The closing price is crucial as it represents the universal market data reference price for all equity-linked products including mutual funds, Exchange Trade Products (ETPs) and derivatives.
Managing Director, Rosenblatt Securities
“The buy-side money manager has to make sure that they remain anonymous and that their intentions are not given up to the street. They don’t want to pass up the opportunity to be part of the biggest liquidity event available to them…anywhere, on any exchange.
Therefore they have to send a broker into the crowd to be able to source that liquidity in a professional manner. If you’re not part of that trade, if you decide that you don’t want to avail yourself of a floor broker, you’re missing out on a tremendous opportunity.”
Senior Managing Partner, Meridian Equity Partners
"As a floor broker we have the ability to represent and execute our clients’ order flow all the way up to and including the Closing Bell. That gives us the ability to make decisions very late in the day.
There are some order types where you have to commit your closing participation at an earlier time. But when using a floor broker you’ve got that ability to add, to change your limits or cancel an order all the way up to and including the Closing Bell.”
Cuttone & Company
“We provide fully electronic automated access to the point of sale, and we also can provide manual representation at the point of sale. So because we have this discretion at the point of sale, we are able to provide a multitude of different execution opportunities at the market, or at a limited price – and when we are participating at the market or limited prices, our point of sale presence also gives us the ability to participate with parity, which gives us a more fair and equitable split at the point of sale so that our client is not sitting in the queue, but is participating at a price, at his limit.”