XJO - Bear Posts only (Factors which might cause the markets to fall), page-23299

Please elaborate on the post close trading situation.

ChatGPT said:

Certainly — the new post-close trading session on the ASX is a major structural change that quietly rewrites the end-of-day game plan for many traders and institutions. Let’s unpack it in detail:

Post-Close Trading: What It Is

Starting June 23, 2025, ASX now offers a Post-Close Session (PCS) after the usual closing auction.

Process Flow:

1. 4:00 PM AEST
   The market enters the Pre-Close Phase, where orders can still be modified or entered.

2. 4:10 PM – 4:11 PM AEST
   Closing Single Price Auction (CSPA) happens — this determines the official closing price.

3. NEW: Post-Close Session (4:11 PM – 4:12 PM AEST)

   • A 1-minute window where participants can trade at the official closing price.

   • Orders can be matched but only at that fixed closing price.

   • No new price discovery — it’s locked to the CSPA result.

   • Trades are settled as normal, and volumes from this session are reported as part of that day's activity.

✅ Key Rules of the Post-Close Session:

• Eligible Orders:

  • Only Limit Orders priced exactly at the closing price will be matched.

• No Order Amendments:

  • You can only enter or cancel orders — you cannot modify existing orders.

• No Price Movement:

  • The price is frozen — no bidding wars, no undercuts — pure liquidity cleanup.

️ Why Did ASX Introduce It?

1. Global Alignment:
   Similar post-close sessions exist on exchanges like NASDAQ and Euronext.

2. Additional Liquidity:
   Helps large players execute remaining positions without distorting prices.

3. Earnings Releases:
   Stocks that release earnings or news right at the close now have a short window for immediate, same-day trades.

4. Operational Flexibility:
   Clean up unmatched orders that would otherwise carry forward or expire.

⚡ Who Benefits?

• Fund Managers: Can clean up large positions with minimal impact.

• Day Traders: Can opportunistically close out remaining exposure.

• Algorithmic Traders: Will likely adapt to capture micro-spreads in this final phase.

Potential Risks or Manipulations?

• Thin liquidity in this window could allow quiet accumulation or disposal by savvy players.

• There’s some debate over whether this could slightly distort volume statistics, as it adds extra trades post-auction.

Summary Table

	Feature	Pre-Change	Post-Change
1	Post-Close Trading	No	Yes, 4:11 PM – 4:12 PM
2	Price Movements Allowed	N/A	No, only closing price trades
3	Order Types	N/A	Limit Orders at closing price
4	Purpose	N/A	Final liquidity clean-up