A trading algorithm (algo) that targets the closing price, and hence the name “market-on-close (MOC) algo”. This algorithm allows electronic traders to capture the last price traded at the end of the period in question (e.g., a day) against the last price reported by the market. As such, it would produce more volume at market closes when the volume is high, and less volume during light trading periods (around lunch break).

The MOC algorithm automatically alternates between MOC strategy and target close strategy depending on the trading order and user-defined parameters. Traders can employ it for trading orders that target the closing price. Traders can enhance an MOC algorithm with a limit to avoid executions below or above a given market level.