What is the Auction?
Every trading day, a pre-market and post-market auction takes place that helps determine the opening and closing price on an underlying stock. The new auction will be in addition to those that already take place and will start at midday each day that the exchange is open. Throughout this period you will NOT have the ability to trade via you accounts, at the end of the auction period, usual trading will recommence.
Why has the Midday Auction been introduced?
This is an attempt by the London Stock Exchange (LSE) and the Deutsche Börse (DB) to try and provide a specific time for traders to meet, trade blocks without market movement. In short, intraday auctions could satisfy the requirement to cross blocks of stock without market impact.
If you have any further questions in regards to this, please feel free to contact us via email at BUX Support.