SEC Gives Cboe Green Light for Closing-auction Plan

Last week, SEC staff gave Cboe the green light for its closing-auction proposal, despite opposition from the NYSE and Nasdaq. According to a story in The Wall Street Journal, the two exchange groups will seek to have the SEC’s five commissioners reconsider that decision. Under Cboe’s proposal, traders would get a new way to execute “market-on-close” orders, in which they agree to buy or sell shares at whatever end-of-day price is determined in the auction. Instead of sending such orders at the NYSE or Nasdaq, traders could send them to Cboe, which would seek to fill them using the day’s final price, published by its competitors.