CHICAGO, July 29, 2020 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), one of the world's largest exchange
holding companies, today announced 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.
![(PRNewsfoto/Cboe Global Markets, Inc.) (PRNewsfoto/Cboe Global Markets, Inc.)](https://mma.prnewswire.com/media/622233/Cboe_Logo.jpg)
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.
Cboe expects its planned U.S. offering to improve execution
quality for market participants sourcing intraday liquidity in the
public markets, and in particular, for those that are seeking to
trade in size, including block-like executions, or to access
liquidity in thinly traded securities. As market participants
increasingly turn to off-exchange venues to meet their various
liquidity needs without displaying their orders, Cboe's U.S.
periodic auction is designed to provide a competitive, on-exchange
alternative for participants to execute order flow with reduced
market impact.
Cboe's European offering – a lit order book that
independently operates frequent auctions throughout the day – was
the first of its kind when it launched in 2015 and continues to be
the leading European periodic auction, accounting for over 70
percent of all periodic auction activity, or approximately 2.4
percent of notional value traded on European equities exchanges,
with an average daily traded notional value of more than €1 billion
during the first half of 2020.
Adam Inzirillo, Head of U.S.
Equities at Cboe Global Markets, said: "We believe periodic
auctions could be the next market structure innovation that further
enhances the U.S. equity markets, and serves to meet customer
demand for additional choice in where they source liquidity, or
trade with minimum market impact. Additionally, as block-sized
liquidity continues to increase off-exchange with the use of
conditional orders, our offering provides an attractive alternative
for on-screen liquidity. Based on the sizable success of our
European offering, we are excited to bring this innovation to the
U.S. market."
David Howson, President of Cboe
Europe, said: "As the first European exchange operator to launch a
periodic auction book, we are pleased to further extend our
leadership in this arena, and build a global franchise with the
addition of a U.S. periodic auction offering. The planned creation
of periodic auctions for the U.S. equity markets is a great example
of our strengths as a truly global enterprise, enabling us to
leverage and deploy our vast technology and product innovation
expertise across asset classes and regions, to better serve our
customers."
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) is one of the world's largest
exchange holding companies, offering cutting-edge trading and
investment solutions to investors around the world. The company is
committed to defining markets to benefit its participants and drive
the global marketplace forward 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. 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 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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Tim
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Debbie
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+1-646-856-8734
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+44 (0)
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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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Cautionary Statements Regarding Forward-Looking
Information
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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.