Cboe Enables Anti-Accident Tool for Smarter Auction Order Trading
Published Date: 6/27/2025
Notice
Summary
Cboe Exchange is updating its rules to let traders use a special tool called Match Trade Prevention (MTP) when placing Periodic Auction Orders. This change helps prevent accidental trades between related parties and makes trading smoother and safer. The update was approved quickly and will affect anyone using these auction orders starting soon, with no extra costs involved.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
MTP Now Allowed on Periodic Auctions
If you use BYX Periodic Auction Orders (PAO or PAE), you can now add a Match Trade Prevention (MTP) instruction to those orders. The SEC approved the change on June 24, 2025, and MTP is optional — the Exchange offers it as a supplemental risk tool to help prevent wash sales and self-trades, with Users not required to pay to use it.
MTP May Be Temporarily Bypassed In-Auction
When a Periodic Auction is in progress (Periodic Auction Period is a fixed 100 milliseconds), the Exchange may temporarily bypass or not apply a User's MTP instruction in specific situations so the auction can complete. In some cases an inbound MTP Periodic Auction Order that would be marketable against a resting MTP Periodic Auction Order will be cancelled while the auction is in progress; MTP enforcement resumes after the auction ends.
Minimum Quantity Gets Ignored When Combined With MTP
If you attach both a Minimum Quantity instruction and an MTP instruction to a Periodic Auction Order or Continuous Book Order, the System will ignore the Minimum Quantity instruction when a Periodic Auction is in progress and will apply MTP instead. When no Periodic Auction is in progress, the System will apply MTP per Rule 11.9(f); the filing also states the System can ignore Minimum Quantity on inbound Periodic Auction Orders when applying MTP.
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