Marking the Close

What is Marking the Close?

Marking the Close meaning A manipulative or disruptive trading practice whereby a trader buys or sells a large number of futures contracts during the closing period of a futures contract (that is, the period during which the futures settlement price is determined) in order to benefit an even larger position in an option, swap, or other derivative that is cash settled based on the futures settlement price on that day. Also called “Banging the Close.”

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary