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VOLEX Execution Services announces liquidity auctions for institutional option traders

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VOLEX Execution Services has announced VOLEX Liquidity Auctions for traders seeking liquidity beyond the current quotes represented by the US listed option markets. 

The VOLEX Liquidity Auction uses exchange-sponsored auction sessions to attract liquidity that is not displayed. 
 
Many option exchanges offer intraday auction sessions. However, the institutional market does not have the execution services or the tools required to tap this source of liquidity. 
 
“Most smart order routers do not accommodate auction sessions for institutional clients,” explains Vishal K Gupta (pictured), Head of VOLEX Execution Services. “As spreads continue to widen, traders must adopt more advanced execution services to discover liquidity, electronically and efficiently. 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,” says Ed Boyle, CEO of BOX Options Exchange. “We are very pleased to see VOLEX take the auction process to the institutional community, as it has been underserved in this area.”
 
The VOLEX Liquidity Auction is an entirely automated service. VOLEX secures a contra to the client order to initiate an auction at an exchange. Once the auction is opened, liquidity providers compete for the order, providing size and price improvements.  n this way, the auction facilitates competitive bidding to attract liquidity not posted on the displayed market. During the auction, the order can only be traded at the National Best Bid and Offer (NBBO) or better. 

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