Cboe Launches New Sweep Order Types to Bolster Liquidity

Cboe has introduced new periodic auction book (PAB) to lit sweep order types, which will allow participants to sweep the local Cboe PAB or dark book, before sweeping the local Cboe lit book – in an effort to improve liquidity targeting for users. The new order types are available in the Cboe UK and Cboe NL PABs according to a story in The Trade news. The new sweep order types will allow participants to access the dark, PAB and lit order books without the need to submit multiple orders, alongside the benefit of potential latency saving by eliminating the need to have separate orders. For several years, Cboe has offered dark/lit sweep order types which are used by participants to capture price improvement on orders destined for lit books. For the first time, the new sweep orders will allow participants to check for liquidity in Cboe’s PAB before targeting liquidity on the local Cboe lit book through a single order. The launch will also help expand use cases of PAB to additional phases of a broker’s smart order routing (SOR), while delivering execution quality benefits more widely.