On January 14, Santiago Exchange implemented the Closing Auction for liquid shares and quotas funds, where in the last 15 minutes of the day, the offers that are currently in the stock trading system at the start of the Closing Auction timeline, will be automatically include in this negotiation mechanism.
Once the Closing Auction has begun, the parties may add, delate and modify the orders. During this period, the entered purchase and sale offers, will not be automatically matched if there is price compatibility, but it will be matched at the end of the Closing Auction period time and at the closing price. This price, will be calculated by an algorithm that maximizes the number of the shares transactions, between the compatible purchase and sale offers, that were in force at the matching time. The assigned price will be a single award price for all operations.
The algorithm in the Closing Auction is just the same methodology currently used in the existing equity trading operations in Santiago Exchange (opening and volatile auction).
In the implementation of this operational functionality, Santiago Exchange also created new types closing orders, which are used only to enter at the Closing Auction.
This implementation concludes the list of 13 initiatives to update the rules of the stock Exchange trading. Initiatives presented in 2014 by the AdHoc Committee of the Board of Directors and widely discussed with the market and validated by the Chilean Commission for the Financial Market.