12 Days of Trading – Day 3 of 12: DVC and Auctions
Day 3 of 12: Having looked at auction volumes in our previous view, we will now drill down into the two auction types that have seen increased use over the last year.
- MiFID II was a catalyst for Periodic Auction use and the introduction of Double Volume Cap suspensions resulted in further acceleration.
- Interestingly, the volumes were sustained after the DVC suspensions were lifted for many affected stocks.
- Periodic Auctions were not the only Auction to see volume increase during DVC stock suspension… (see chart below).
- From this visualisation we can see that Closing Auction volumes have also been growing.
- Like Periodic Auctions, Closing volumes appeared to grow further when DVCs where in place and maintain their overall upward trajectory once most suspensions were lifted.
- Of course the Official Close is used as a benchmark for Index Funds and ETFs both of which represent increasingly popular ways for retail investors to diversify their risk.
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On our 12 Days of Trading
As the year draws to a close we have been asked by clients to look and highlight 2018 trends since the introduction of MiFID II. We thought we might make this a festive exercise on the 12 days leading up to the holidays. As a result, you will find a post to a different 2018 big-xyt observation each day.
We hope you enjoy them.
This content has been created using the Liquidity Cockpit API.
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