Insights & Commentary

Market Structure

The Most Important 15 Minutes of Your Day

Sep 1 2018

The Most Important 15 Minutes of Your Day

Why the close matters more than ever when trading small- and mid-cap stocks
 
Liquidity Moving To The End Of The Day
Over the past several years, the U.S. equities market has seen a drastic shift in volume towards the end of the day, and this trend is showing no signs of slowing down any time soon.  The charts below show the distribution of intraday trading volumes from 2007 through 2018.  If we look even more recently, 20.9% of total market volume traded in the final 15 minutes of the day and the closing auctions over the past 30 trading days (5/11/18 – 6/22/18).  In a market where accessing liquidity has presented a challenge for many institutional investors, this concentration of liquidity at the end of the day has become difficult to avoid.  In fact, many investors have made adjustments to specifically target end-of-day trading.

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