7 May 2025
📈Cboe Proposes Change to Enhance Auction Response Processing Time
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Functionality Relating to the Processing of Auction Responses
Summary
The Cboe Exchange has proposed increasing the auction response processing time for SPX options to provide more opportunities for timely responses during peak trading activity. This change aims to enhance price improvement for investors and ensure a more efficient auction process while balancing market risks and execution speed.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule changes by Cboe Exchange extend auction response processing times, permitting more timely auction responses during high message traffic, directly benefiting investors and liquidity providers. This could result in better execution prices for SPX options and more competitive market conditions.