MOC orders

Discussion in 'Order Execution' started by mydann, Jun 1, 2006.

  1. mydann


    I am trying to use the MOC orders in my coming trades. But it is stated that it is NOT GUARANTEED to be executed. It scares me a lot because I don't want to see the stock positions the next day if I have submitted a MARKET orders.

    Here are questions about MOC orders:
    1> What is the percentage of MOC orders not executed?
    2> Is it a better idea to submit MKT orders at 15:59:50 instead?
  2. For NYSE stocks, if you submit a MOC order, you will be filled MOC. The exception is if you are trying to Sell Short MOC.

    You must submit your MOC order 20 minutes or more from the close, and once you are within that 20 minute period, the order can not be cancelled.
  3. mydann


    Thanks for the reply.

    Yes, I understand that the normal MOC orders are only allowed to be entered before 15:40. The offsetting orders are up 16:00.

    I mean if it is a better idea to put a MKT order at 15:59:50 than put a MOC order. The MKT order will be executed for sure.
  4. alanm


    I'd be concerned about entering orders so close to the close. What's wrong with MOC orders?
  5. mydann


    There would be no problem to adjust the timing of MKT order, like at 15:59:00 or even at 15:30:00.

    The problem with MOC order is that it may not be executed at all. That would be a big problem for non-full time trader. For people like me with full time job, I don't look at my account every day. That would be a serious issue if I assume that the stock position is cleared by MOC order when it is actually not.

    It was a big misunderstanding for me when I assumed that the MOC orders are always executed. The borkers web sites don't mention anything about the execution exception at all. I will check again to see if my MOC orders have been executed next time. I don't expect suprises in stock trading. :)

    BTW, what's the percentage of non-executed MOC orders? As mschey's reply, the exception happens only in selling short MOC orders. Is this an assumption in NYSE or is it the regulation? Is there any reason why the selling short MOC orders may not be executed?

  6. lescor


    If your order is routed to the nyse, your MOC order WILL be executed, guaranteed. I'd check to see that your broker is routing them to the floor and not simulating an moc order themselves.

    Sell short moc orders can't be guaranteed an execution because short orders can only be filled on an uptick. If the stock closes on a downtick, then your order is not eligible for a fill.
  7. mydann


    Here is the comment from NYSE:
    Market-On-Close (MOC) Order
    A market order, which is to be executed in its entirety at the closing price, on the Exchange, of the stock named in the order, and if not so executed, is to be treated as cancelled. The term "at the close order'' shall also include a limit order that is entered for execution at the closing price, on the Exchange, of the stock named in the order pursuant to such procedures as the Exchange may from time to time establish.

    Here is the commnet from IB:
    A Market-on-Close (MOC) order is a market order that is submitted to execute as close to the closing price as possible

    Did I miss anything here? NYSE comment says the no guarantee of execution only. IB comment does mention it at all.

    Lescor, thank you for your clarification. If the selling short moc is not eligible for a fill, shouldn't the buying long moc be not eligible too?
  8. jimcrist


    Related question. I've done literally 1000's of MKT orders near the close (not MOC). Today I sent an order to sell 1500 shares of HRS six seconds before the close. The specialist filled 600 shares, but not the rest. Aren't they obligated to fill an accepted market order??? This is the first time this has happened to me. I'm convinced the specialist forgot about my order by mistake. Why should I take the risk for their screw up? What the rule on this? Thanks...