As part of Direct Edge's commitment to providing innovative, value-added services to our Members, Direct Edge will introduce the Edge Market CloseSM (EMC) order type, a new, low-cost alternative to participating in the market close. Direct Edge intends to launch the EMC on the EDGX Exchange (EDGX) in the fourth quarter of 2012, pending approval by the Securities and Exchange Commission (SEC).
The EMC is being designed in response to Member demand for a low-cost alternative to the closing price auctions of NASDAQ and the New York Stock Exchange (NYSE). Direct Edge intends to inject needed price competition in the market for closing price executions.
Exchange Closing Process |
Market-on-Close Fees |
NASDAQ Closing Cross Fees1 |
$0.001 per side |
NYSE Closing Auction Fees2 |
$0.00095 per side |
Edge Market Close Fees for |
FREE |
EMC Functionality
EDGX will pair off matching buy and sell EMC orders received until a published cut-off time, which will be a designated period prior to the cut-off times that NASDAQ and the NYSE have established for the submission of market-on-close orders. EDGX will then route the unmatched portion of any EMC orders that could not be paired on EDGX to the primary listing market as market-on-close orders in advance of their respective cut-off times (ie. orders in NASDAQ-listed stocks will be routed to NASDAQ and orders in NYSE-listed stocks will be routed to the NYSE). After their respective closing processes are complete, EDGX will execute the paired shares of EMC orders at the official closing prices published by NASDAQ and the NYSE.