# How Do Periodic Auctions Mitigate the Risk of Adverse Selection in Block Trading? ▴ Question

**Published:** 2025-08-09
**Categories:** Question

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## Concept

Executing a significant block of securities presents a fundamental paradox. The very act of expressing a large trading interest in a [continuous market](https://prime.greeks.live/question/can-a-hybrid-model-combining-continuous-market-and-periodic-auction-execution-outperform-a-purely-continuous-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) sends a signal, one that can be detected and acted upon by other participants in microseconds. This [information leakage](https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is the primary catalyst for adverse selection, where the market price moves away from the institutional trader before the order can be fully executed. The challenge is one of revealing the desire for size without simultaneously revealing the tactical urgency, a dilemma that traditional market structures struggle to resolve.

A [continuous limit order book](https://prime.greeks.live/area/continuous-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) operates on a simple, yet unforgiving, principle of price-time priority. It is a system that inherently rewards speed, creating an environment where high-frequency strategies can thrive by detecting the footprint of a large institutional order and trading ahead of it.

[Periodic auctions](https://prime.greeks.live/area/periodic-auctions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) are a direct architectural response to this systemic vulnerability. They represent a deliberate shift in market design, moving from a continuous, time-based competition to a discrete, volume-centric event. By collecting and aggregating trading interest over a defined, albeit brief, period, the auction mechanism fundamentally alters the nature of [price discovery](https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). All orders within a given auction call are considered simultaneously, coalescing into a single clearing price designed to maximize the executable volume.

This batching process acts as an information buffer, neutralizing the speed advantages that drive predatory trading strategies in continuous markets. The system is engineered to prioritize the discovery of the largest possible pool of liquidity at a fair price, creating a more stable and equitable environment for executing large orders.

> Periodic auctions restructure the trading process from a continuous race of speed to a discrete event of volume discovery, fundamentally altering the information landscape to protect large orders.

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## The Temporal Shield against Information Decay

The core of [adverse selection](https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) in block trading is information decay ▴ the process by which the value of the trader’s private information about their own order diminishes as it is revealed to the market. A [periodic auction](https://prime.greeks.live/question/what-are-the-primary-differences-between-a-periodic-auction-and-a-conditional-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) introduces a temporal shield to slow this decay. The auction’s duration, often a mere 100 milliseconds, is a controlled window of opacity. Within this window, the informational advantage of high-speed participants is nullified.

An order’s priority is determined by its price and size, not its arrival time. This structural change means that sophisticated traders cannot gain an edge by simply being faster; they must compete on the same terms as all other participants within that discrete time slice.

Furthermore, the randomization of the auction’s exact uncrossing time is a critical feature that prevents gaming of the system. If the auction’s conclusion were perfectly predictable, participants could time their final submissions to gain an advantage. By introducing a randomized endpoint, the mechanism forces all participants to reveal their true trading interest without knowing the precise moment of execution. This uncertainty acts as a powerful deterrent to strategies that rely on last-look advantages, compelling participants to compete on the fundamental merit of their orders rather than on their ability to exploit the system’s timing.

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## Strategy

The introduction of a periodic auction mechanism fundamentally reframes the strategic calculus for institutional traders and liquidity providers. For an institution executing a block trade, the strategic imperative shifts from one of concealment to one of managed participation. In a continuous market, the primary strategy involves complex order slicing and algorithmic execution designed to camouflage the full size of the order, minimizing its footprint to avoid detection. This is a defensive posture, a constant battle against information leakage.

A periodic auction, conversely, offers an offensive strategy. The trader can commit a larger portion of their order to the auction, confident that the structure itself provides protection against the very information leakage they would otherwise fight to prevent.

Liquidity providers, in turn, must adapt their strategies. In a continuous market, their models are often tuned to identify and price the risk of trading with potentially informed flow. They profit from the bid-ask spread, but this profit is constantly at risk from adverse price moves following a trade with a large, informed participant. Periodic auctions create a different competitive dynamic.

Since the speed advantage is removed, liquidity providers can focus on providing size at competitive prices. The mechanism allows them to participate in a large trade without the fear of being “run over” by a high-frequency participant who sees the order fractions of a second earlier. This encourages a greater aggregation of natural buyers and sellers, fostering a more robust and reliable liquidity environment.

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## A Comparative Framework for Execution Venues

The decision of where to route a large order is a critical component of institutional strategy. The choice between a [continuous limit order](https://prime.greeks.live/question/can-a-hybrid-model-combining-continuous-market-and-periodic-auction-execution-outperform-a-purely-continuous-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) book (CLOB) and a periodic auction involves a trade-off between immediacy and [market impact](https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). The following table provides a strategic comparison of these two execution venues from the perspective of an institutional block trader.

| Strategic Factor | Continuous Limit Order Book (CLOB) | Periodic Auction |
| --- | --- | --- |
| Primary Execution Goal | Immediate execution for marketable orders, price priority for passive orders. | Low market impact and price improvement for size discovery. |
| Key Risk Factor | High information leakage and potential for adverse selection from HFTs. | Execution uncertainty; the order may not fill if there is insufficient contra-side interest. |
| Dominant Competitive Advantage | Speed (latency). Participants with the fastest connections and algorithms have an edge. | Size and Price. The mechanism prioritizes maximizing the volume executed at a single price. |
| Information Disclosure | Full pre-trade transparency of the order book, revealing depth at all price levels. | Limited pre-trade transparency, typically showing only indicative price and volume. |
| Optimal Use Case | Executing small, non-urgent orders or accessing immediate liquidity for urgent trades. | Executing large, non-urgent blocks where minimizing market impact is the highest priority. |

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## The Game Theory of Batching

From a game theory perspective, a continuous market can be modeled as a sequential game where players react to each other’s moves in real-time. A periodic auction transforms this into a simultaneous game. All participants must submit their “moves” (their orders) without full knowledge of the other players’ intentions. This shift has profound implications.

It reduces the incentive for predatory behavior, as there is no opportunity to react to another player’s move before the game is resolved. The dominant strategy becomes one of honest representation of trading interest. Participants are incentivized to submit orders that reflect their true valuation, as this gives them the best chance of being included in the final execution at a price that maximizes the traded volume.

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## Execution

The operational flow of a periodic auction is a precisely engineered process designed to achieve its strategic goals of low impact and reduced adverse selection. While specific implementations vary between exchanges like [Cboe](https://prime.greeks.live/area/cboe/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Europe and Cboe’s BYX Exchange in the U.S. the core mechanics follow a consistent pattern. The process begins not with an order, but with the potential for a match. The system is designed to create a discrete trading event, a controlled environment that exists for a fraction of a second, separate from the continuous flow of the market.

For an institutional desk, interacting with a periodic auction involves specific order types. An order can be designated as “Periodic Auction Only,” meaning it will not interact with the continuous book. Alternatively, an order can be “Periodic Auction Eligible,” allowing it to rest on the continuous book but also participate in an auction if one is initiated.

This flexibility allows traders to integrate auction-based execution into their broader liquidity-seeking strategies. The entire process, from initiation to completion, is designed to be a self-contained, price-forming event that protects participants from the information decay that plagues executions on fully transparent, continuous venues.

> The operational sequence of a periodic auction is a controlled, multi-stage process that transforms continuous market risk into a discrete opportunity for price and size improvement.

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## The Lifecycle of an Intraday Auction

The execution of a trade within a periodic auction is not instantaneous. It follows a structured lifecycle, typically lasting around 100 milliseconds, designed to gather liquidity and establish a fair market price. Understanding this lifecycle is critical for any participant seeking to leverage these mechanisms effectively.

- **Auction Initiation** ▴ An auction is triggered when the system identifies matching buy and sell interest from auction-eligible orders. For instance, a buy order designated as “Periodic Auction Only” crosses the spread with a sell order that is also eligible. This initiates the “call period.” 

- **Call Period and Information Dissemination** ▴ During this phase, which may last up to 100 milliseconds, the exchange disseminates limited information about the pending auction. This typically includes an indicative uncrossing price and the potential volume. This message acts as a signal to the broader market that a liquidity event is occurring, inviting other participants to submit their own orders to the auction. 

- **Order Aggregation** ▴ Throughout the call period, the auction collects all incoming eligible orders. These orders are added to the initial buy and sell orders, building a larger pool of liquidity. The key principle here is that all orders received during this period are treated as arriving at the same time, neutralizing any speed advantage. 

- **Uncrossing and Price Determination** ▴ At the end of the randomized call period, the auction uncrosses. The system’s algorithm calculates the single price at which the maximum number of shares can be traded. This becomes the official auction price. In some models, orders from the continuous book at that price level may also be swept into the auction to maximize the executed volume. 

- **Trade Publication** ▴ The execution is reported to the public tape as a single, large trade at the determined auction price. This consolidated print further masks the individual orders that constituted the auction, providing an additional layer of post-trade anonymity. 

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## Quantitative Impact Analysis

The tangible benefit of a periodic auction can be quantified by comparing a hypothetical block execution in an auction versus a continuous [limit order book](https://prime.greeks.live/area/limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Consider an institution needing to buy 50,000 shares of a stock with a current market of $10.00 / $10.02.

| Execution Metric | Execution in Continuous Market (CLOB) | Execution in Periodic Auction |
| --- | --- | --- |
| Execution Strategy | Aggressive algorithmic order, sweeping multiple price levels. | Single order submitted to the auction. |
| Price Slippage | The first few thousand shares execute at $10.02, but the large order size walks the book up to $10.03, $10.04, and higher. | The auction attracts sufficient sell-side interest to clear the entire block at a single price, for example, $10.015 (the midpoint). |
| Average Execution Price | $10.035 | $10.015 |
| Total Cost | $501,750 | $500,750 |
| Market Impact (Adverse Selection Cost) | $1,000 (relative to the auction price) | $0 (relative to itself, as it sets the price) |
| Post-Trade Signal | A series of rapid trades at increasing prices signals large buying pressure, inviting further adverse price movement. | A single, large block print at the midpoint provides a much weaker signal and leads to more stable post-trade prices. |

This simplified model demonstrates the core value proposition. The periodic auction consolidates interest at a single moment in time, creating a competitive pricing environment that results in significant price improvement and a drastic reduction in the information leakage that causes adverse selection. The data from exchange operators consistently shows that post-trade markouts ▴ a measure of adverse selection ▴ are significantly lower for periodic auction executions compared to their continuous market counterparts. 

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## References

- Budish, E. Cramton, P. & Shim, J. (2015). The High-Frequency Trading Arms Race ▴ Frequent Batch Auctions as a Market Design Response. The Quarterly Journal of Economics, 130(4), 1547-1621.

- O’Hara, M. (1995). Market Microstructure Theory. Blackwell Publishers.

- Cboe Global Markets. (2023). How Periodic Auctions Enhance Trading in Europe and the U.S. Cboe White Paper.

- Financial Conduct Authority. (2018). Periodic auctions. FCA Publication.

- Lehalle, C. A. & Laruelle, S. (2013). Market Microstructure in Practice. World Scientific Publishing.

- Wah, J. & Wellman, M. P. (2016). Latency Arbitrage, Market Fragmentation, and Price Discovery ▴ A Game-Theoretic Approach. Proceedings of the 17th ACM Conference on Economics and Computation.

- Aquilina, M. Foley, S. O’Neill, P. & Ranaldo, A. (2022). The Causal Impact of MiFID II on Market Quality ▴ A Transatlantic Perspective. Swiss Finance Institute Research Paper Series.

- Comerton-Forde, C. & Rydge, J. (2006). Dark trading and price discovery. Pacific-Basin Finance Journal, 14(4), 367-394.

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## Reflection

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## A System Consciously Chosen

The adoption of a market mechanism like the periodic auction is more than a tactical choice; it is a philosophical one. It reflects a conscious decision to prioritize market quality and fairness over the raw, unadulterated speed that has come to define modern electronic trading. Viewing market structures as engineered systems, each with its own inputs, rules, and outputs, allows for a more profound understanding of their strategic implications. The periodic auction is a testament to the idea that market design is not a static given but a dynamic field of innovation, where new architectures can be created to solve for specific, persistent frictions like adverse selection.

The ultimate goal is the construction of a superior operational framework, one that provides not just access to liquidity, but access to a higher quality of execution. The knowledge of how these systems function is the foundational component of that framework, enabling the institutional participant to move from being a mere user of the market to a master of its underlying mechanics.

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## Glossary

<a href="https://prime.greeks.live/area/information-leakage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Information Leakage

Meaning ▴ Information leakage, in the realm of crypto investing and institutional options trading, refers to the inadvertent or intentional disclosure of sensitive trading intent or order details to other market participants before or during trade execution. </a><a href="https://prime.greeks.live/question/can-a-hybrid-model-combining-continuous-market-and-periodic-auction-execution-outperform-a-purely-continuous-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Continuous Market

A hybrid model outperforms by segmenting order flow, using auctions to minimize impact for large trades and a continuous book for speed. </a><a href="https://prime.greeks.live/area/continuous-limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Continuous Limit Order Book

Meaning ▴ A Continuous Limit Order Book (CLOB) is a fundamental market structure where buy and sell limit orders for a financial instrument are continuously collected, displayed, and matched. </a><a href="https://prime.greeks.live/area/periodic-auctions/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Periodic Auctions

Meaning ▴ Periodic Auctions represent a market mechanism where buy and sell orders for a particular crypto asset are accumulated over discrete, predefined time intervals and subsequently matched and executed at a single, uniform clearing price at the end of each interval. </a><a href="https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Price Discovery

Meaning ▴ Price Discovery, within the context of crypto investing and market microstructure, describes the continuous process by which the equilibrium price of a digital asset is determined through the collective interaction of buyers and sellers across various trading venues. </a><a href="https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Translucent circular elements represent distinct institutional liquidity pools and digital asset derivatives. A central arm signifies the Prime RFQ facilitating RFQ-driven price discovery, enabling high-fidelity execution via algorithmic trading, optimizing capital efficiency within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-best-execution-framework.jpg)

## Adverse Selection

Meaning ▴ Adverse selection in the context of crypto RFQ and institutional options trading describes a market inefficiency where one party to a transaction possesses superior, private information, leading to the uninformed party accepting a less favorable price or assuming disproportionate risk. </a><a href="https://prime.greeks.live/question/what-are-the-primary-differences-between-a-periodic-auction-and-a-conditional-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Periodic Auction

Periodic auctions concentrate liquidity in time to reduce impact; conditional orders use logic to discreetly find latent block liquidity. </a><a href="https://prime.greeks.live/question/can-a-hybrid-model-combining-continuous-market-and-periodic-auction-execution-outperform-a-purely-continuous-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Continuous Limit Order

A hybrid model outperforms by segmenting order flow, using auctions to minimize impact for large trades and a continuous book for speed. </a><a href="https://prime.greeks.live/area/market-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Market Impact

Meaning ▴ Market impact, in the context of crypto investing and institutional options trading, quantifies the adverse price movement caused by an investor's own trade execution. </a><a href="https://prime.greeks.live/area/cboe/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent cylinder containing a white sphere floats between two curved structures, each featuring a glowing teal line. This depicts institutional-grade RFQ protocols driving high-fidelity execution of digital asset derivatives, facilitating private quotation and liquidity aggregation through a Prime RFQ for optimal block trade atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-6.jpg)

## Cboe

Meaning ▴ Cboe Global Markets functions as a prominent global market infrastructure provider, extending its comprehensive suite of trading solutions across various asset classes, and critically, into the burgeoning digital asset sector. </a><a href="https://prime.greeks.live/area/limit-order-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Limit Order Book

Meaning ▴ A Limit Order Book is a real-time electronic record maintained by a cryptocurrency exchange or trading platform that transparently lists all outstanding buy and sell orders for a specific digital asset, organized by price level. </a>

**Tags:** [Market Impact](https://options.greeks.live/area/market-impact/), [Batch Auctions](https://options.greeks.live/area/batch-auctions/), [High-Frequency Trading](https://options.greeks.live/area/high-frequency-trading/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Continuous Limit Order Book](https://options.greeks.live/area/continuous-limit-order-book/), [Information Leakage](https://options.greeks.live/area/information-leakage/)	

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### [What Are the Regulatory Implications of High-Frequency Trading Strategies Exploiting Quote Discrepancies?](https://options.greeks.live/question/what-are-the-regulatory-implications-of-high-frequency-trading-strategies-exploiting-quote-discrepancies/)
![A vertically stacked assembly of diverse metallic and polymer components, resembling a modular lens system, visually represents the layered architecture of institutional digital asset derivatives. Each distinct ring signifies a critical market microstructure element, from RFQ protocol layers to aggregated liquidity pools, ensuring high-fidelity execution and capital efficiency within a Prime RFQ framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-execution-stack.jpg)

Regulatory frameworks mitigate HFT quote discrepancy exploitation through enhanced surveillance, latency controls, and stringent market abuse rules.

- 
### [What Are the Key Differences in Best Execution for Rfq versus Lit Markets?](https://options.greeks.live/question/what-are-the-key-differences-in-best-execution-for-rfq-versus-lit-markets/)
![Precision-engineered modular components, resembling stacked metallic and composite rings, illustrate a robust institutional grade crypto derivatives OS. Each layer signifies distinct market microstructure elements within a RFQ protocol, representing aggregated inquiry for multi-leg spreads and high-fidelity execution across diverse liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-multi-layered-algorithmic-rfq-liquidity-aggregation.jpg)

Best execution is achieved by matching an order's size and information content to the market structure—public or private—that best contains its cost.

- 
### [How Does Latency Differ between RFQ and Central Limit Order Book Markets?](https://options.greeks.live/question/how-does-latency-differ-between-rfq-and-central-limit-order-book-markets/)
![Precision metallic component, possibly a lens, integral to an institutional grade Prime RFQ. Its layered structure signifies market microstructure and order book dynamics. The blue center implies price discovery for digital asset derivatives, with markings for smart order routing and atomic settlement within RFQ protocols for high-fidelity execution.](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-institutional-digital-asset-rfq-execution-engine.jpg)

Latency in RFQ markets is a function of negotiation time, while in CLOB markets it is a function of technological speed.

- 
### [How Does an RFQ Protocol Differ from a Central Limit Order Book in Managing Information?](https://options.greeks.live/question/how-does-an-rfq-protocol-differ-from-a-central-limit-order-book-in-managing-information/)
![Geometric planes and transparent spheres represent complex market microstructure. A central luminous core signifies efficient price discovery and atomic settlement via RFQ protocol. This visualizes multi-leg spread execution across diverse liquidity pools for institutional digital asset derivatives on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-4.jpg)

An RFQ protocol manages information through discreet, targeted disclosure to select dealers, while a CLOB broadcasts trading intent publicly.

- 
### [What Are the Primary Differences between Analyzing Lit Market and RFQ Transaction Costs?](https://options.greeks.live/question/what-are-the-primary-differences-between-analyzing-lit-market-and-rfq-transaction-costs/)
![A sleek, metallic multi-lens device with glowing blue apertures symbolizes an advanced RFQ protocol engine. Its precision optics enable real-time market microstructure analysis and high-fidelity execution, facilitating automated price discovery and aggregated inquiry within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-engine-intelligence-layer.jpg)

Analyzing lit market costs involves measuring slippage against public data, while RFQ analysis evaluates private auction quality against a modeled fair value.

- 
### [What Are the Key Differences between Best Execution for Lit Markets and RFQ Protocols?](https://options.greeks.live/question/what-are-the-key-differences-between-best-execution-for-lit-markets-and-rfq-protocols/)
![A transparent glass bar, representing high-fidelity execution and precise RFQ protocols, extends over a white sphere symbolizing a deep liquidity pool for institutional digital asset derivatives. A small glass bead signifies atomic settlement within the granular market microstructure, supported by robust Prime RFQ infrastructure ensuring optimal price discovery and minimal slippage.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer-facilitating-optimal-price-discovery-and-best-execution.jpg)

Lit markets offer continuous, anonymous price discovery for small orders; RFQ protocols provide discreet, negotiated liquidity for large blocks.

- 
### [How Does a Hybrid Rfq Model Enhance Demonstrable Best Execution?](https://options.greeks.live/question/how-does-a-hybrid-rfq-model-enhance-demonstrable-best-execution/)
![A precision-engineered metallic and glass system depicts the core of an Institutional Grade Prime RFQ, facilitating high-fidelity execution for Digital Asset Derivatives. Transparent layers represent visible liquidity pools and the intricate market microstructure supporting RFQ protocol processing, ensuring atomic settlement capabilities.](https://options.greeks.live/wp-content/uploads/2025/08/robust-institutional-digital-asset-derivatives-trading-platform-for-optimized-rfq-protocol-execution-and-deep-liquidity-access.jpg)

A hybrid RFQ model enhances best execution by architecting a multi-stage process that maximizes price competition while minimizing information leakage.

- 
### [How Do Periodic Auctions Impact the Broader Market Ecosystem?](https://options.greeks.live/question/how-do-periodic-auctions-impact-the-broader-market-ecosystem/)
![A stylized abstract radial design depicts a central RFQ engine processing diverse digital asset derivatives flows. Distinct halves illustrate nuanced market microstructure, optimizing multi-leg spreads and high-fidelity execution, visualizing a Principal's Prime RFQ managing aggregated inquiry and latent liquidity.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-execution-engine-optimizing-digital-asset-derivatives-market-microstructure-for-institutional-liquidity-aggregation.jpg)

Periodic auctions concentrate liquidity into discrete moments, enabling efficient block execution with minimal price impact.

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---

**Original URL:** https://options.greeks.live/question/how-do-periodic-auctions-mitigate-the-risk-of-adverse-selection-in-block-trading/
