How does AIM improve execution? does it tighten the bid/ask? or something else?

[Cdntrader]

Cboe to Enable Electronic Auction Mechanism for S&P 500 Index Options Products, Beginning February 22

https://www.tradersmagazine.com/dep...-electronic-auction-for-sp-500-index-options/

 

[Cdntrader]

Found a few resources:

Automated Improvement Mechanism

https://cdn.cboe.com/resources/features/Cboe_USO_CrossingGuide.pdf
https://markets.cboe.com/us/options/trading/crossing_orders/

http://www.marketswiki.com/wiki/Automated_Improvement_Mechanism

 

[veronaruffin]

Thank you for sharing this. The entire article makes very good sense and it is also informative, thanks.

 

[daxydet]

Ugh still trying to wrap my head around it, but from what I can understand the increased opportunities for price enhancement throughout the trading day, which further enhances the quality of the trade execution, has something to do with it. Hoping I’m right and if not, would like to hear it from other traders.