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Benchmark close

The exchange-designated closing price used for index calculation, fund valuation, derivatives settlement and performance measurement, normally set by the closing auction.

The last print of the day and the official close are not always the same thing. The official price comes from the primary listing venue's closing-auction; a stray off-exchange print a second later does not change it.

This matters because trillions of dollars are marked to that number. A fund that must match an index is measured against the official close, so executing anywhere else creates tracking error.

Example: a fund holds 500,000 shares valued at the 40.00 official close, or $20,000,000. A 100-share trade at 40.35 prints on a trade-reporting-facility after the cross. The fund still marks at 40.00, because the late print is not the benchmark.

Related: closing-auction, market-on-close, vwap-algo, consolidated-tape

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