The SNAPSM Auction Advantage
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All SNAP Auctions bring together liquidity from the CHX Book, the Start SNAP Order (for Participant-initiated SNAP Auctions), orders responding to SNAP Auctions, and resting SNAP Auction Only Orders. The last source alone has provided more than 630,000,000 shares of available liquidity during the first month of SNAP Auction availability. Click here to see historical resting SNAP Auction liquidity.
When CHX accepts your Start SNAP Order, a sub-second Participant-initiated SNAP Auction begins. This SEC-approved auction is conducted entirely in the dark. Exchange-initiated SNAP Auctions can also be triggered. Learn more.
Designed with minimal information leakage and low exchange fees, a SNAP Auction offers a fair playing field to everyone involved.
CHX's Participant-initiated SNAP Auction rules were approved by the SEC on October 6, 2015. Rules permitting Exchange-initiated SNAP Auctions have been filed. CHX SNAP Auctions are now available.
Learn more about the new way to do business.
When you participate in a SNAP Auction, you’ll experience many benefits not found in other auctions.
- A SNAP Auction is conducted entirely in the dark to minimize information leakage. There’s no visibility of the limit price, side, or size of the initiating order or the limit price, side, size, or existence of any other participating order. Going dark – and conducting the entire SNAP Auction in the dark – is a tremendous benefit.
- Participants will remain totally anonymous from order submission through clearing, unless they choose otherwise.
- SNAP Auctions offer the ability to seek or provide liquidity with minimized information leakage.
- Participants experience fair exchange pricing for a premium service that no other US equities exchange offers.
There are two ways to trigger a SNAP Auction – with Participant-initiated or Exchange-initiated auctions.
- Participant-initiated SNAP Auctions begin when CHX accepts a Start SNAP Order sent by a CHX Participant.
- Exchange-initiated SNAP Auctions occur by periodic polling of SNAP Auction eligible symbols.
Once initiated, each auction cycle proceeds in the same way. Learn more about Participant-initiated and Exchange-initiated SNAP Auctions.
SNAP Auctions consist of:
- CHX Resting Limit Orders (other than orders marked Cancel on SNAP Auction) when the SNAP Auction begins.
- The Start SNAP Auction Order initiating the SNAP Auction.
- Dormant Auction Only Orders (AOOs) present when the SNAP Auction begins. Click here to see historical resting SNAP Auction liquidity.
- New inbound orders submitted to participate in the SNAP Auction.
- Orders placed at other market centers represented by Reg National Market System (NMS) protected quotes.
Anyone wishing to create, increase, decrease, or liquidate a block size position can benefit from initiating a SNAP Auction. When seeking liquidity in a SNAP Auction, your order must meet these important requirements:
There are four ways to provide liquidity to a SNAP Auction:
- Place an order in the CHX Book. Orders resting in the CHX Book participate in a SNAP Auction unless the order sender elects not to do so by using the Cancel on SNAP Auction order modifier. Resting orders have the highest execution priority at their limit price during a SNAP Auction.
- Place a SNAP AOO prior to a SNAP Auction. SNAP AOOs are not visible or pingable and can be algorithmically priced at the time each SNAP Auction occurs using parameters set by the order sender. When a SNAP Auction takes place, dormant SNAP AOOs are activated, priced, and included in the auction. CHX accepts SNAP AOOs to hold dormant and ineligible for matching until a SNAP Auction begins in that security.
You may submit one or more AOOs at various prices and algorithmic pricing parameters on both the buy and sell side. Time priority is given to orders placed early. For example, your algorithmically priced SNAP AOO placed at 7:00 am is given time priority ahead of an equally priced SNAP AOO submitted at 7:01 am. Your order is dormant when placed and then activated when a SNAP Auction is initiated.
- Place a limit order during the SNAP Auction Order Acceptance Period. Limit orders placed during the SNAP Auction Order Acceptance Period are eligible to participate in the SNAP Auction based on their limit price and time of entry. These orders remain eligible for matching after the SNAP Auction ends and any unexecuted portion is included in the CHX Book after the SNAP Auction.
- Place a SNAP AOO during a SNAP Auction Order Acceptance Period. Like limit orders, SNAP AOOs placed during the SNAP Auction Order Acceptance Period are also eligible to participate based on price and time of entry. These orders do not remain eligible for matching after the SNAP Auction ends. At the end of the SNAP Auction, any unexecuted portion is either cancelled or made dormant and ineligible for matching until another SNAP Auction occurs in the security.