CHICAGO, March 29, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a market operator and global trading
solutions provider, today announced it has received approval from
the U.S. Securities and Exchange Commission (SEC) to introduce
periodic auctions on Cboe BYX Equities Exchange – bringing to the
U.S. equities markets a new, innovative intraday auction mechanism
based on a reimagining of a process that it first launched in
Europe. Cboe expects to launch
U.S. periodic auctions in the third quarter of 2021.
"We continue to engage with market participants to create
innovative trading solutions that aim to meet the needs of today's
investors and we are pleased to bring this first-of-its-kind
periodic auction to the U.S. equities markets," said Adam Inzirillo, Senior Vice President, Head of
North American Equities at Cboe Global Markets. "Outside of the
opening and closing auctions each day, investors generally have
fewer options to interact with natural liquidity, particularly when
seeking to execute larger orders with minimum market impact. We
believe our U.S. periodic auctions mechanism will provide a unique,
on-exchange solution to satisfy investor demand for access to
immediate liquidity and size, as well as deliver additional price
improvement and increased execution opportunities to benefit all
market participants."
Cboe's U.S. periodic auctions are designed to allow market
participants to access frequent, price-forming auctions throughout
the course of the trading day, thereby helping them find liquidity
in a short time-frame with low market impact, while prioritizing
price and size. Periodic auctions of one-hundred milliseconds will
be initiated when there are matching auctionable buy and sell
orders available to trade in the auction. The message identifying
when an auction is available will be randomized, helping to
mitigate any potential adverse selection. Periodic auctions will
not interrupt trading in the continuous market and will execute at
a price level that maximizes volume executed in the auction,
including any orders posted on the BYX order book.
As block-sized liquidity continues to increase off-exchange with
the use of conditional orders, Cboe believes U.S. periodic auctions
could provide market participants with an on-exchange alternative
to off-exchange electronic block trading by enabling them to trade
in size, while reducing market impact. In addition, Cboe expects
U.S. periodic auctions to help facilitate price discovery and
enhance liquidity and market quality in all equity securities,
particularly thinly-traded securities trading on Cboe BYX
Equities Exchange.
Cboe Europe Periodic Auctions – a lit order book that
independently operates frequent auctions throughout the trading day
– was the first of its kind when it launched in 2015 and has become
a highly valued trading mechanism that aims to deliver better
execution outcomes. It continues to be the largest European
periodic auction, accounting for over 80 percent of all periodic
auction activity, or approximately 3 percent of notional value
traded on European equities exchanges, with an average daily traded
notional value of €1 billion in 2020.
David Howson, President,
Europe and Asia Pacific at Cboe Global Markets, said:
"The creation of U.S. periodic auctions demonstrates our unique
capabilities as a truly global exchange operator to leverage and
deploy our vast technology and product innovation expertise across
asset classes and regions to serve our global base of customers. By
serving customer demand we have achieved tremendous success with
Cboe Europe Periodic Auctions, and look forward to further
extending our leadership and expanding our offerings with the
addition of a new U.S. model."
About Cboe Global Markets, Inc.
Cboe Global Markets
(Cboe: CBOE) provides cutting-edge trading and investment solutions
to market participants around the world. The company is committed
to defining markets through product innovation, leading edge
technology and seamless trading solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S., Canadian and European equities, exchange-traded products
(ETPs), global foreign exchange (FX) and volatility products based
on the Cboe Volatility Index® (VIX® Index), recognized as
the world's premier gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe, and owns EuroCCP, a
leading pan-European equities clearing house. Cboe also is a
leading market globally for ETP listings and
trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
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Analyst
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Angela
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Tim
Cave
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Debbie
Koopman
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+1-646-856-8734
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+44 (0)
7593-506-719
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+1-312-786-7136
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atu@cboe.com
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tcave@cboe.com
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dkoopman@cboe.com
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Cboe®, Cboe Volatility Index®, Cboe Global Markets®,
EDGX®, and VIX® are registered trademarks of Cboe Exchange,
Inc. All other trademarks and service marks are the property
of their respective owners.
Cautionary Statements Regarding Forward-Looking
Information
Certain information contained in this press
release may constitute forward-looking statements. We caution
readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made and are subject to
a number of risks and uncertainties.
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SOURCE Cboe Global Markets, Inc.