Marking the Close

This Issue in United States

Concept of Marking the Close in Futures Trading

In this context of financial law, the following is a definition of Marking the Close: 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.”