9 Sep 2025
📈Cboe BZX Exchange’s New Closing Auction Rule Amendments
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Approving a Proposed Rule Change To Amend Rule 11.23 Regarding the Closing Auction
Summary
The SEC approved proposed rule changes by Cboe BZX Exchange to amend how Late-Limit-On-Close (LLOC) and Limit-On-Close (LOC) orders are priced and submitted. These changes aim to enhance market efficiency, reduce price volatility, and provide clearer pricing signals during the Closing Auction, potentially benefiting both users and overall market stability.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed rule changes influence the pricing and timing of closing auction orders, which can impact market makers and users' trading strategies. Adjustments in order submission and re-pricing behaviors affect trading behavior and market volatility, which directly influence business operations and financial outcomes.