IOSCO Seeks Feedback by Aug. 21 on Equity Liquidity Risks as Closing Auctions Gain Weight
Updated
Updated · Markets Media · May 22
IOSCO Seeks Feedback by Aug. 21 on Equity Liquidity Risks as Closing Auctions Gain Weight
3 articles · Updated · Markets Media · May 22
IOSCO opened a consultation running through Aug. 21, 2026 on how equity-market liquidity is shifting during the trading day, alongside a separate report on extended trading hours.
The consultation says trading is increasingly concentrated at the close in many jurisdictions, a trend that can deepen price discovery but also drain continuous-session liquidity, raise manipulation and volatility risks, and strain venue operations.
Its proposed good practices are based on a global stocktake of regulators and trading venues, assessing auction design, intraday liquidity patterns and whether current supervisory tools remain fit for purpose.
The extended-hours report finds trading outside core sessions is still mostly retail-driven with limited institutional participation, typically showing lower liquidity, wider bid-ask spreads and altered execution conditions.
IOSCO said regulators have largely tested existing rules on integrity, disclosure, surveillance and resilience rather than creating bespoke regimes, while flagging settlement, staffing and post-trade capacity as practical constraints.
Is the traditional trading day obsolete as liquidity shifts to after-hours and closing auctions?
With AI now controlling most trades, could its 'black box' logic trigger the next financial crisis?