Cboe Receives SEC Approval to Launch Periodic Auctions for U.S. Equities Trading

Cboe Global Markets​, Inc. (Cboe), a cutting-edge trading and investment solutions provider, announced that it has received approval from the U.S. Securities and Exchange Commission (SEC) to roll out periodic auctions on Cboe BYX Equities Exchange – bringing to the U.S. equities markets a new, innovative intraday auction mechanism. Cboe's U.S. periodic auctions are expected to launch in the third quarter of 2021.

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. 

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.  

"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," Adam added.