Releasing space at close can be handled in the management class by 
specifying Partial release with Yes Immediate (YI) or Conditional Immediate 
(CI) if you want to ensure that data sets have secondary allocation before 
the space is released. This does not require the space management function 
of HSM to be active whereas Y or C would typically release space during 
primary space management. 

If you are licensed for DFSMSdss, you can also release space and perform 
extent reduction. Since you are using extended format datasets, DSS will 
release space against VSAM as well as sequential. Extent reduction can be 
performed using the CONSOLIDATE function. CONSOLIDATE used to be 
specified as a keyword of DEFRAG but is now its own command as of z/OS 
1.10. 

Hope this helps.

Chris Taylor

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