One of the most common definitions for closing prices is "the price of the last transaction for a security in a trading session" or words to this effect. Others simply use the phrase "the final price for a security on a given trading day".
Unfortunately none of these definitions are accurate. The closing price can be a myriad of things, ranging from simply the last transaction for a security for the day to a price derived from a complicated calculation or process. The closing price can also vary within a market where one rule applies to one trading segment and another rule applies to another segment.
As a provider of end-of-day pricing data, EDI has identified the need for closing price data to be defined as this is an area where ambiguity and inconsistency are rampant. The Closing Prices Handbook enables professionals to understand the definitions, compare the data and explain any pricing anomalies.
In the past 12 months, there have been about 30 updates, some of which had a direct impact on the trading rules and the way the closing price is derived. There have also been some changes in MIC Codes, with the addition of new market segments. There are already 3 main changes planned for the first half of 2013 and there will be probably more to come.
Below are some examples of the market changes that happened in 2012 and indirectly affect closing pricing data.
Brazil - BM&F Bovespa
Migration to the BM&F Bovespa Puma trading system
- Stage 1 – Derivatives & FX trading - completed by the end of 2011.
- Stages 2 & 3 – Equities, Equity Derivatives and Bond trading scheduled for 2012 & 2013.
- ZA06 - Exchange traded products
- ZA12 - NSX and JSE dual listed instruments
- ZA05 - Instrument of and African origin only other than Namibian securities
Italy – Borsa Italiana
June 25th 2012 - BIt now offers trading in a wide range of instruments through Millennium Exchange, the London Stock Exchange trading system.
Kuwait - Kuwait Stock Exchange
May 13th 2012 – Kuwait Automated Trading System (KATS) replaced by the Nasdaq OMX X-Stream trading platform.
New Zealand – NZX
May 4th 2012 - The NZX announced its intention to migrate all trading to the Nasdaq OMX X-Stream trading platform towards the end of 2012.
Nigeria - Nigerian Stock Exchange
April 28th 2012 - The Nigerian Stock Exchange extended its contract with Nasdaq OMX committing to the implementation of the Nasdaq OMX X-Stream trading platform in the first half of 2013.
Oman - Muscat Securities Markets
The Muscat Securities Markets is now trading through the NYSE Technologies NSC V900 order-driven trading platform.
South Africa – Johannesburg Stock Exchange
July 2nd 2012 - Equities and equity products are now traded via the London Stock Exchange trading system, Millennium Exchange.
- Two new markets segments have now been created
- One market segment is no longer in use
April 2012 - The SIX Swiss exchange upgraded its SIXess trading system with core technology provided by the Nasdaq OMX X-Stream INET trading platform.
United Arab Emirates - Abu Dhabi Securities Exchange
May 28th 2012 – The Abu Dhabi Securities Exchange extended its contract with Nasdaq OMX committing to the implementation of the Nasdaq OMX X-Stream trading platform in the second half of 2013.
