IPO/New Issue Auction

The Cboe IPO/New Issue Auction provides a mechanism that has been designed to allow Members to match a maximum number of shares at a single price for new issues. The New Issue Auction is used to launch a new ETP on the first day of trading on Cboe. The IPO Auction is used for a corporate IPO.

Cboe will disseminate a halt for new issues prior to the start of the Early Trading Session on the morning of the IPO/New Issue Auction. In addition, an administrative message will be published to the consolidated tape on the morning of the IPO/New Issue Auction for a new issue. This administrative message will contain information about the issue price and the expected time of the IPO/New Issue Auction.

In the event of a volume based tie at multiple price levels the IPO/New Issue Auction price will be determined by the price closest to the Volume Based Tie Breaker.

Note that IOC orders received during an IPO/New Issue auction will not be cancelled back until they have been processed in the auction or they have been explicitly cancelled by a Member. Such IOC orders that are not filled in the auction will be cancelled at the conclusion of the auction.

BZX supports early trading for new ETP listings on the first day of trading. Issuers may choose between the current New Issue Auction process where new ETPs launch during Regular Trading Hours or an Early First Day Trading option where new ETPs will begin trading during the Early Trading Session. ETPs that begin trading during the Early Trading Session will transition to Regular Trading Hours via a standard Opening Auction.

Members will be informed of the ETP trading start time via Trade Desk notice prior to New Issue Auction. This information will be available in the Corporate Action report.