What Is a “Batch Auction” and How Does It Determine the Final Execution Price?

A batch auction is a method of matching trades where all orders submitted within a specific time window (the batch window) are collected and executed simultaneously at a single, uniform price. The final execution price is determined by the price that maximizes the total volume of matched trades within the batch.

This single-price execution prevents front-running because there is no temporal priority to exploit, and all participants receive the same price.