Could The Dutch Auction System Fix ETF Problems?

Could The Dutch Auction System Fix ETF Problems?

Dutch auctions have been going on since at  least the 16th century. Originally, a “Dutch auction” just meant a reverse auction where a single item would go up for bid at a very high price, with the price being steadily lowered by the auctioneer until someone raised their paddle to buy the item and finish the auction. Dutch auctions are still used once in a while in the collectibles or real estate markets.

As Dave Nadig, Director of Exchange Traded Funds for FactSet, notes in a recent report: “In financial markets, we use the term [Dutch auction] to refer to almost any configuration of rules that result in crossing a maximum volume of securities at a single price. The Treasury department uses a system like this to sell bonds. WR Hambrecht uses a similar system to price IPOs. The New York Stock Exchange uses it every day to open and close stocks.”

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for Read More

How NYSE uses Dutch auctions

The NYSE version of a Dutch auction collects all of the Market-on-Open and Limit orders together and determ