CHICAGO, Jan. 22, 2020 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), one of the world's largest exchange
holding companies, today announced it has received final approval
from the U.S. Securities and Exchange Commission (SEC) to introduce
Cboe Market Close (CMC) on the company's BZX Exchange. CMC is a new
end-of-day match process for non-Cboe listed securities, and is
planned for launch in early 2020.
Cboe created CMC to meet widespread industry demand for a
competitively priced, on-exchange alternative to participating in
primary market closing auctions. Closing auctions, which currently
take place on the primary listing markets at the end of each
trading day, determine the official end-of-day prices for thousands
of listed U.S. securities. In recent years, both closing auction
volumes and fees have continued to rise significantly and as a
result, a growing portion of trading has become increasingly
expensive1 for market participants.
"We are committed to bringing innovative products and services
to the U.S. equities markets, and created Cboe Market Close
specifically to provide investors with greater accessibility and
cost-efficiency to one of the most critical liquidity events of the
trading day," said Bryan Harkins,
Executive Vice President and Head of Markets at Cboe.
"Additionally, as a meaningful portion of primary closing auctions
now occur off-exchange, CMC would also offer an on-exchange
alternative to bring more transparency to the industry, and enhance
the overall trading environment for all market participants."
Under the model, market participants will have the choice to
route Market-On-Close (MOC) orders to CMC on Cboe's BZX Exchange,
where they are pre-matched with other MOC orders at 3:35 p.m. ET. The trades are then executed when
the primary exchange closing price is published, saving
participants from paying closing auction fees on orders that are
not price forming. The timing of the CMC match allows any unmatched
MOC orders to be sent to the primary exchanges' closing auctions.
CMC is available to all participants with no tiering.
While a variety of brokers today provide functionality to match
MOC orders at the official closing price, CMC will be the first
such functionality to be offered by a securities exchange operator,
incorporating unique on-exchange features including anonymity and
trade transparency.
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 the largest stock exchange 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.
Media
Contacts
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Analyst
Contact
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Angela
Tu
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Stacie
Fleming
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Debbie
Koopman
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+1-646-856-8734
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+44-20-7012-8950
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+1-312-786-7136
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atu@cboe.com
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sfleming@cboe.com
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dkoopman@cboe.com
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CBOE-E
CBOE-OE
Cboe®, Cboe Volatility Index® and VIX® are registered
trademarks and Cboe Global MarketsSM is a service mark
of Cboe Exchange, Inc. All other trademarks and service marks
are the property of their respective owners.
1 In the past seven years, closing auction fees have
increased anywhere between five percent to 60 percent at NYSE and
Nasdaq, respectively.
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SOURCE Cboe Global Markets, Inc.