Volex Execution Services Rolls Out Institutional Auctions for US Listed Options
New sessions in response to widening spreads.
Borrowing from the retail market, where auctions are regularly used for price improvement, the sessions are designed to only allow an order to trade at national best and offer (NBBO) or better, and will provide another tool for both broker-dealers and the institutional buy side to use in combating widening spreads and insufficient liquidity at size.
"Most smart order routers do not accommodate auction sessions for institutional clients. As spreads continue to widen, traders must adopt more advanced execution services to discover liquidity, electronically and efficiently," says Vishal Gupta, head of VOLEX Execution Services. "Auctions set up an 'electronic jump ball' where liquidity providers compete for the order."
"The markets have matured and auctions have become a significant part of the listed options business," adds Ed Boyle, CEO of BOX Options Exchange, which runs intraday auctions in the space. "We are very pleased to see Volex take the auction process to the institutional community, as it has been underserved in this area," continued Boyle.
The auctions will be available to registered brokers for US listed options, with orders sent to Volex via FIX Protocol or via REDIPlus and Bloomberg execution management systems.
More on options auctions and ongoing liquidity initiatives later this week as BST reports from the Options Industry Conference in Miami Beach, Florida.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
The industry is not ready for what’s around the corner
Waters Wrap: As cloud usage and AI capabilities continue to evolve (and costs go up), Anthony believes the fintech industry may face a similar predicament to the one facing journalism today.
Overbond’s demise hints at cloud-cost complexities
The fixed-income analytics platform provider shuttered after failing to find new funding or a merger partner as costs for its serverless cloud infrastructure “ballooned.”
Pico’s IntelliVUE brings observability to its networks
Leveraging its 2019 acquisition of Corvil Analytics, Pico is providing users with real-time oversight and monitoring of their connectivity.
Technical and regulatory questions surround Europe’s T+1 move
The EU roadmap mirrors the UK’s goal of an October 2027 move. With more than two years to prepare, firms must consider how to implement the non-prescriptive guidelines and weigh where to automate.
Academic warns of systemic risk from AI-powered trading
Strategies generated by LLMs exhibit “very strange, correlated trading behavior”, says Lopez Lira.
The Model Context Protocol brings agents to life—along with risk
Waters Wrap: From chat to infrastructure modernization, Anthropic’s MCP offers a ‘bridge’ to agentic AI, but its early days may prove disillusioning.
NZX outlines plans to bolster fast-growing dark pool
Since launching one year ago, NZX’s dark book has 5.5% of the exchange’s total turnover, and price improvement per trade on average is 11 basis points, but the exchange has more in store.
Agentic AI comes to Bloomberg Terminal via Anthropic protocol
The data giant’s ubiquitous terminal has been slowly opening up for years, but its latest enhancement represents a forward leap in what CTO Shawn Edwards calls, “the way we should talk to the world.”
