The Gateway to Algorithmic and Automated Trading

SEC approves Cboe's closing auction alternative

First Published 22nd January 2018

Cboe has been successful in its application to create an alternative to closing auctions in the US stock market

The Securities Exchange Commission (SEC) has granted approval to Cboe to launch the Cboe Market Close, an alternative to closing auctions in the US stock market.

Cboe Market Close will match trades using the closing price set on the home exchanges which would otherwise be completed by the New York Stock Group Exchange (NYSE) and Nasdaq.

As a result NYSE and Nasdaq could lose trading volume, both exchanges have already voiced objections saying that the Cboe alternative could fragment the markets and harm price discovery in the closing auctions on the primary listing markets.

Cboe said Cboe Market Close was created in response to widespread industry frustration with existing closing auctions and rising prices.

Click here for the SEC release