05.09.2016

CHX Confirms MAy 13 SNAP Auction Starting Date

CHICAGO–The Chicago Stock Exchange (CHX) confirmed that May 13 is the date it will introduce SNAP Auctions – the only offering of its kind by any US securities exchange. SNAP Auctions will be conducted during the regular trading session based on either a customer auction request or as a result of accumulating sufficient interest based on aggregated SNAP Auction Only orders.

John Kerin, CEO and President of CHX, said, “We have designed and built a product which largely addresses the need of buy side customers to temporarily aggregate liquidity in one location in an otherwise fragmented market structure. We believe this will be achieved with minimal information leakage. SNAP Auctions de-emphasize speed and reward competitive pricing, which should work favorably for many market participants. Although we anticipate SNAP Auction activity to grow gradually over time, we do believe that the viability and benefits of this way of doing business will eventually be embraced by the buy side.”

Mark O’Connor, Director of Sales, said, “Participant-initiated SNAP Auctions will give all market participants the ability to initiate an on-demand auction, which will integrate orders resting in the CHX limit order book, orders responding to the SNAP Auction, SNAP Auction Only orders, and protected bids and offers in the national market system into a single auction. There is really nothing like it today in the US equity market.”

Steven Givot, Senior Vice President for Strategy and Product Development, said, “CHX will initiate a SNAP Auction when sufficient size can be matched among orders resting in CHX’s limit order book, SNAP Auction Only orders, and – to a limited extent – protected bids and offers in the national market system. CHX-initiated SNAP Auctions create an opportunity for the buy side to submit pegged orders – including midpoint pegged orders – which are completely undetectable. Since CHX will only initiate a SNAP Auction when significant size can be matched, it is highly unlikely that SNAP Auction Only midpoint pegged orders will be executed in small bits and pieces. We know from listening to the buy side that they would like to submit midpoint pegged orders which are undetectable, unpingable, and unlikely to be executed in small parts. CHX-initiated SNAP Auctions will deliver that to them.

About CHX: CHX is a full-service national securities exchange with robust, high-performance technology. CHX offers trading in more than 8,300 listed securities and offers a compact set of order types designed to provide a level playing field for all order senders. More atwww.chx.com

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