NYSE Regulation reminds all DMM units on the NYSE and Amex of the requirements related to executing Market on Close (“MOC”) and/or Limit on Close (“LOC”) odd lot orders.  With the elimination of the odd lot system, all incoming interest regardless of share size is eligible to be executed against eligible contra side interest in the Display Book. 

With the elimination of NYSE and NYSE Amex Equities Rule 124, odd lot interest and the odd lot portion of partial round lot (“PRL”) interest is subject to all the provisions of the Exchanges’ rules, including those governing MOC and LOC orders. [See  IM 10-35, 7/30/10).  Further, as noted in IM 10-35 and as provided for in Rule 104(e), the DMM Unit is no longer the contra party to odd lot executions, except for odd lot size quantity that is to be executed in opening, re-opening, and closing transactions but remains unpaired after the DMM has paired all other eligible round lot sized interest. 

    Unpaired MOC and LOC Odd Lot Orders.   If the only MOC and/or LOC interest at the close is an unpaired odd-lot quantity and there's no contra side interest at the last sale price - i.e., the immediately preceding transaction - the DMM may provide the contra side at that price, up to 99 shares maximum, irrespective of whether there has been a recent print or intra-day trade in the subject security.   Alternatively, the DMM may price and execute the shares at a level where there is other contra side interest.  When closing a security, DMMs are subject to their market maintenance and affirmative obligations.  [Member Educ. Bulletin 10-02, 9/28]