The Securities and Exchange Commission (SEC) approved a rule change proposed by Cboe Exchange, Inc., concerning auction notification messages and index combo orders in SPX, which is a type of options trading based on the S&P 500 Index. This rule modifies the minimum price increments for these orders in electronic auctions, aiming to align them with trading done on the floor for consistency and fair price improvement. The change is intended to make sure investors placing large or complex SPX options can receive better price improvements and more transparent pricing information during electronic auctions. The overall goal is to promote competition and provide improved opportunities for investors in electronic and floor-based trading environments.
Simple Explanation
The Securities and Exchange Commission (SEC) has agreed to a change in the rules for how some big and complicated trades are done using computers, to make sure they are fair and match how trades are done by people in person. This change helps to make prices for these trades clearer and possibly better, like getting a better deal when buying something big or tricky.