Cboe to Launch Order Book Priority for Retail Investors

Cboe Global Markets, Inc. announced it has received approval from the SEC to launch its new Retail Priority program on the Cboe EDGX Exchange. Designed to enhance execution quality for individual investors who trade U.S. equities, the mechanism will introduce enhanced order book priority for orders submitted on behalf of retail investors, thereby increasing the probability of execution for their orders. Cboe expects to launch Retail Priority in November. Retail Priority offers a distinct allocation model, which differs from the traditional time-based allocation model used by most U.S. equities market centers that allocate trades to orders that arrive first in time at each price point. The Retail Priority model focuses on improving execution quality for individual investors by reducing their time to execution. Under the mechanism, individual investors’ displayed limit orders will post at the front of the order queue for same-priced orders submitted on Cboe EDGX.