# 15 min Closing Auctions



## bullmarket (3 February 2006)

It's like watching paint dry with this 15 min closing auction nowadays.   

I suppose the upside is that at 4:00 I can go make a cuppa, take the dog for a walk around the block and still be back in time to watch the close


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## rozella (3 February 2006)

I totally agree bullmarket, as far as the average small to medium trader goes, they can't do anything meaningful until the last 30 to 60 seconds anyway.  A good percentage of my trades are in the closing matchout.

Well I don't have a dog, but I do have a cuppa whilst I assess the situation.


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## Bobby (3 February 2006)

These after 4pm deals ?, are they broker to broker or overseas trades or intra broker trades ?.

Anyone know ?.
Bob.


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## rozella (3 February 2006)

G'day Bobby,

Any of us are eligible to join in provided you use an online broker, or even if you use a full service broker for that matter, however, it is easier if you do it yourself.


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## Bobby (3 February 2006)

rozella said:
			
		

> G'day Bobby,
> 
> Any of us are eligible to join in provided you use an online broker, or even if you use a full service broker for that matter, however, it is easier if you do it yourself.




Hullo Rozella,
I do use an online broker, but I'm not sure of your explanation to my question ?.  

Regards Bob


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## finnsk (3 February 2006)

this is probably the wrong thread, but what happens in the 15 min before opening?
Is that the same it happens in the last 30 - 60 secs?

Finnsk


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## bullmarket (3 February 2006)

Hi Bobby, finnsk

I'll try to explain what happens before the market opens at 10am but the same process is followed during the closing auction (4:00-4:15pm) and before ANY pre-open auction.....ie...usually about 10 mins before a stock resumes after a trading halt for any reason.

The stock market goes into pre-open from 7am during which time *anybody *  can put in whatever bids/offers they like (auction). During pre-open SEATS (Stock Exchange Automated Trading System) then goes thru a 4 stage algorithm to compute the IAP (Indicative Auction Price) based on the mkt depth whenever it changes. The IAP represents what the opening price would be at that particular time based on the current market depth if the stock opened for trading there and then. 

At 10am stocks begin trading in alphabetical order.  The market is fully open by about 10:08am.  When the stock opens for trading, all orders with bids above the IAP and all orders with offers below the IAP are executed at the IAP. The IAP when the stock actually opens becomes the quoted opening price.  During pre-open people put in bids above the IAP and offers below the IAP to ensure their orders are executed on opening.

At 4:00pm normal trading stops but again *anybody * can continue to put in whatever bids/offers they like until 4:15pm, just like in the morning preopen, but the orders aren't executed until 4:15pm.  During the 15 mins closing auction SEATS again computes the IAP as above each time the market depth changes. At 4:15pm, for each stock all orders with bids above the IAP and all orders with offers below the IAP are executed at the IAP.  In this case the IAP will be the quoted closing price.

I hope this makes sense and helps

cheers

bullmarket


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## markrmau (3 February 2006)

In addition to previous comments, please read:

http://www.asx.com.au/investor/education/basics/trading_hours.htm

and 

http://www.asx.com.au/investor/education/basics/price_calculations.htm

The only people who may have difficulty participating in open / close autions are those who use marketmaker CFDs.


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## Bobby (3 February 2006)

Thanks for that Bullmarket & Markrmau now got it !.  

Regards 
Bob.


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## finnsk (4 February 2006)

Thanks for your answers much appreciated.


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## bullmarket (6 February 2006)

No problem finnsk, bobby

markrmau's second link explains how the IAP (eventual opening/closing prices) is calculated.

cheers

bullmarket


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## bullmarket (16 February 2006)

tick tock tick tock tick tock tick tock tick tock tick tock tick tock tick tock   

might go have that cuppa and take the dog for a walk round the block.....

see you in 15 mins


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## David123 (16 February 2006)

lol well done qball, u hit 4pm right on  practice hey ? 

cheers


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## bullmarket (17 February 2006)

yes David   looks like I blinked at just the right time when I hit the submit button   

cheers

bullmarket


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## Happy (17 February 2006)

15 minutes I don’t know but a number of times 5 wasn’t enough for me, making me one of not too many who actually benefited from change.


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## bullmarket (17 February 2006)

In case anyone is wondering why the closing price auction period was extended to 4:15pm, the reason is explained on this ASX web page 

cheers

bullmarket


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## David123 (17 February 2006)

Bullmarket, so you didnt mean to hit 4pm?, LOL 

Cheers


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## bullmarket (17 February 2006)

david - I did, but the tricky bit is syncronizing your blinking to the clock


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## bullmarket (3 March 2006)

got time to make a cuppa and come back to get the closing prices


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## bullmarket (21 March 2006)

taking rambo for a walk round the block during the 15 mins closing auction - back for closing prices


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## David123 (24 March 2006)

HMM


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## visual (30 March 2006)

I`ve just noticed that on Etrade the trades that go through after 3.59 arent shown.Can someone tell me why? I `m sure that this hasnt always been the case.Did the 15min.affect that process as well?


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## rozella (30 March 2006)

You are right visual, I just checked on their basic site in market depth, only upto 4.00pm....but they show the matchout course of sales on Power Etrade. 

I wouldn't think the 15 min matchout would affect this on the basic site.  Why don't you ask them ?   They probably want you to upgrade.


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## visual (31 March 2006)

Thanks,Rozella,
unfortunately I dont trade enough to justify the expense of Power etrade,
would you know how else I can look at that information for free?


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## visual (7 April 2006)

Rozella,
took you advise rang etrade,eventually the manager informed me that its a glitch and i should be seeing this information,dont need power trade.Still not fixed though.


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## visual (11 April 2006)

Rozella,Etrade just rang market depth should be on test mode soon.Well see if the glitch has been fixed


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## rozella (11 April 2006)

Thats good Visual.

Are you using the basic etrade site ?  I use the basic site just to place orders when I use etrade, as most of my trades are with other brokers.  

I will check out the market depth at Etrade tonight on the close.

rozella


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## rozella (1 June 2006)

Wow....XAO rose 12.5 points in the matchout period


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## tech/a (1 June 2006)

So what do "They" know that I/we dont!

Normally a leading indicator to FTSE trading----etc.
Bit of Bullishness would be nice.
Still dont think all the Bears have been shaken!


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## rozella (1 June 2006)

Funny thing......XAO dropped 11.5 points in the matchout yesterday, leaving a cleaner slate for June.


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## sails (8 June 2006)

Here's a link to an ASX notice to say that the closing auction will be shortened to 10 mins as from the 17th July.  http://www.asx.com.au/investor/pdf/notices/2006/Clm09306.pdf

Also of interest to options traders is that the lunch time break is to be scrapped from the 10th July - although initially market maker obligations will not apply during 1-2pm.  But still nice to know that one is no longer completely "locked out" if the underlying security takes off during lunchtime   .


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## bullmarket (8 June 2006)

yes - 10 mins CSPA sounds much better to me


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