27 Jun 2025
📈Cboe Exchange's Proposed Rule Change for Match Trade Prevention
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendments No. 1 and No. 2, and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendments No. 1 and No. 2, To Amend Exchange Rule 11.25(e) To Allow Users To Utilize the Exchange's Match Trade Prevention Functionality When Entering Periodic Auction Orders Onto the Exchange for Execution
Summary
The SEC has approved amendments to Cboe Exchange's Rule 11.25, allowing users to utilize Match Trade Prevention (MTP) functionality for Periodic Auction Orders. This integration aims to enhance trading efficiency while reducing the risk of wash sales and self-trades, thus promoting better compliance and order management for trading participants.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulation involves compliance requirements regarding the Match Trade Prevention (MTP) functionality during Periodic Auctions, which is crucial for business owners using these trading mechanisms. These rules help mitigate wash sales and self-trades, providing a tool for better risk management.