Kevin Tyrrell, Head of Research, NYSE
The boost in retail trading activity which began during pandemic lockdowns in spring 2020 continues today. This trend has impacted various market behaviors, including opening auctions. We have covered how NYSE Opening Auction liquidity has grown due to small order sizes. Below we examine auction volume interest by sector and highlight changing trends in order entry behavior.
Opening auction interest has grown across nearly all sectors.
NYSE-Listed Russell 1000 Stocks
With the growth in retail trading and associated off-exchange volume, NYSE Opening Auction liquidity has become a more important vehicle for accessing retail liquidity.
NYSE-Listed Russell 1000 Stocks
As the Opening Auction has grown, we have seen similar amounts of overnight volume but faster growth in paired shares during the auction periodii compared to Q3 2020.
NYSE-Listed Russell 1000 Stocks
The NYSE Opening Auction executes 58MM shares and $2.8bn in notional value each day, excluding expirations, and has grown market share as retail trading and off-exchange volume has risen. As Opening Auction interest has shifted to earlier in the morning, paired and imbalance volume data can offer better views into liquidity opportunities and a unique source of accessible liquidity.