Thursday July 30 2020
News Source: Global Exchanges
Focus: Trading Systems and Technology
On 29th July 2020, Cboe Global Markets, Inc. (Cboe: CBOE) announced that it plans to introduce periodic auctions – an innovative mechanism based on a model it first launched in Europe – for the trading of U.S. equities, subject to regulatory approval. With the planned launch of U.S. periodic auctions, Cboe aims to build on the success of its European offering and bring to the U.S. equity markets a new, intraday auction mechanism that delivers beneficial execution outcomes for all market participants.
Cboe’s new periodic auction, the first of its kind in the U.S., is designed to allow market participants to access frequent, price-forming auctions throughout the course of the trading day, thereby helping enable them to find liquidity in a short time-frame with low market impact, while prioritizing size and price. The mechanism also includes a unique feature which randomizes the message identifying when an auction is available, helping to mitigate any potential adverse selection. Cboe intends to introduce periodic auctions on its Cboe BYX Equities Exchange.
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