Definition of Closing Cross

Applying "Closing Cross" to Securities Exams:

Nasdaq has developed the closing cross to determine a uniform closing price for securities at the end of the trading day. Customers and firms may enter or cancel on the close orders at any point starting at 7:00 a.m. up until 3:50 p.m. After 3:50 p.m., on the close orders may not be entered, canceled, or modified; orders entered as a legitimate error may be canceled up until 3:55 p.m. On the close orders that may be entered include both market and limit on close orders. Starting at 7:00 a.m. and up until the close of the market, firms may enter imbalance only orders. Imbalance-only orders must be priced and will not be executed prior to the close nor will they be included in the market maker’s displayed quote prior to the close.

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The Securities Institute of America, Inc.