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> Date:
> Wed, 23 Sep 1998 12:23:37 -0700 (PDT)
I would have to check the rules for the CME, but I believe that all
markets have a post close session. However, the closing range and the
settlement are determined prior to the post-close session, and trading
is only allowed within something like 3 ticks above or below the
settlement.
Customer orders can be executed on the post-close session if they are
time stamped prior to the actual closing time. Members can execute
trades for their own account in the post-close session.
I'm sure there are variances of this from market to market, but in
general terms this is how it works. If you try to clear a trade outside
of the prices allowed in the post-close session, you get hauled in front
of A&I to face the music. I'm quite sure the trade would not clear,
therefore it is impossible to have a futures settlement outside the
closing range. This does not apply to options.
Kevin
> what about the post-close trading session?
>
> many times, if there is a order discrepancy or closing range argument
> on or after the close, the s&p pit comittee will open a post-close
> trading session lasting several minutes until the discrepancy or
> argument is resolved. this price becomes the settlement price and can
> be outrside the day's trading range. these post-close prices are
> significant to locals, floor traders, and institutional traders.
>
> TJ
>
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