On May 3, CSE proposed introducing a market-on-close facility.
CSE issued Notice 2024-002, requesting comments on market-on-close introduction.
Proposal Overview
Proposing to introduce a market-on-close facility (CSE MOC) to operate on CSE.
CSE MOC will be fore listed securities and modeled similar to one already operating.
Being introduced to allow source of centralized liquidity for eligible CSE listed securities, to concentrate liquidity, reduce volatility, increase auction execution size.
Will increase market stability by offering market participants opportunity for high quality price discovery based on closing price supported by a deeper information.
Facilitating liquidity and efficiency supports an increase in trade activity which in turn promotes price discovery, and, more importantly, fair, and efficient markets.
Proposal Highlights
Notice describes design of the CSE MOC, new MOC order types, MOC closing price calculation, MOC matching priority, CSE extended offset period (EOP), other aspects.
To facilitate CSE MOC implementation of the CSE MOC, CSE plans to introduce two new MOC specific order types: a market-on-close order and a limit-on-close order.
Will also introduce 3new market states: MOC Imbalance, MOC Freeze, and the EOP.
Outlines calculation of closing price for a MOC eligible security, MOC matching priority, eligibility, new MOC messages, technological changes, expected impact, other items.
CSE expects to be able to introduce the CSE MOC in Q1 of 2025 following receipt of regulatory approval and following appropriate testing period for market participants.
Consultation
Comments on the proposed amendments are due on or before May 31, 2024.
Aug. 2024 CSE Approval
On Aug. 1, 2024, CSE issued notice of approval on market-on-close introduction.
Amendments to take effect later in Q1 of 2025, CSE to disseminate a separate notice.
