$3 SOON, page-480

Inclusion to the ASX requires a vast amount of ETFs and all manner of others to buy ZIP shares to keep compliance with the terms of the funds. The rebalance each 3 months sees companies coming and going, and this event including ZIP is due to a company in the ASX200 having been taken over, so it can no longer be part of it.

If a company was to suddenly gain entry and everybody piled in to buy shares to comply with ETFs for instance, there would be an opportunity for shareholders to hold them over a barrel and demand a high price. The ASX wishes to avoid that, so gives notice in advance as well as ensuring sufficient liquidity each day over a successive period so that there is enough for everybody to buy. Among that is the daily closing auction whereby 2 minutes after close of the market the ASX 'dictates' a price based on weighted average of the day's trading and makes stock available to buyers. It is not a price sensitive auction, it is a list of orders to be filled, which assist to satisfy the orderly entry of a company to the ASX200 without belting the price up.