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PureBytes Links
Trading Reference Links
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Derivatives on index products trade to closing plus 15 minutes.......on
equities to close plus 2 minutes. Why all the activity(like todays
large sell off after the cash close)? Simply because after the cash
closes(primary markets)the derivatives become the primary and provide
the price discovery for the next day's activities. They also provide an
opportunity for the community to rebalance any imbalances that
could/would have resulted as of the closing runoff. Take a good look at
todays WSJ article relating to trading in the final hour and the issues
of late in the day illiquidity.
Equity options used to trade until close plus 10 minutes....we changed
that a few months back to discourage "informed" trading in individual
names after the primary cash closed.
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