SEC Approves Bats BZX Exchange Proposal to Introduce Cboe Market Close for MOC Orders

The SEC approved a Bats BZX Exchange, Inc. proposal to introduce the Cboe Market Close, a match process for market-on-close ("MOC") orders in non-BZX listed securities.

According to the proposal, a BZX Member under the Cboe Market Close would be able to submit buy and sell MOC orders for non-BZX listed securities but would not be able to submit limit-on-close ("LOC") orders. After accepting the orders, the BZX System would seek to execute matched buy and sell MOC orders at the security's official closing price.

The BZX Exchange stated that BZX Members would be required to enter, cancel or replace MOC orders within the timeframe of 6:00 a.m. and 3:35 p.m., Eastern Time. In addition, short sale MOC orders must be marked as "short" or "short exempt" by members.