The Cboe C2 Exchange, Inc. has submitted a proposed rule change to the Securities and Exchange Commission (SEC) to adopt new functionality for processing auction responses. Currently, auction responses can miss out on participating in auctions if there is high message traffic. The proposed change would allow the system to process auction responses for up to 100 milliseconds beyond the end of an auction period to ensure more responses have the chance to be included, which could lead to better pricing for investors. The SEC is seeking comments from the public on this proposed change.
Simple Explanation
The Cboe C2 Exchange wants to make sure that more bids or offers in special market events called auctions can get counted, even if there's a lot of traffic, by stretching the time slightly beyond when the auction officially ends. This might help people get better prices, but it might be a little tricky to understand how it affects smaller and bigger players differently.