23 October 2017

CBOE to launch stock trading market

28 July 2006  |  8698 views  |  0 globe swirly

The Chicago Board Options Exchange says it is teaming with a group of dealing firms to launch a new securities trading marketplace. The move follows the decision by its main rival - The International Securities Exchange (ISE) - to establish its own stock trading operation.

Like the ISE Stock Exchange, CBOE is partnering with a number of broker-dealers to launch the new marketplace.

Interactive Brokers, LaBranche, Susquehanna International and Van der Moolen will collectively hold a 45% in the CBOE Stock Exchange (CBSX), which will be based on the exchange's existing hybrid market model which combines elements of both screen and floor-based trading.

Interactive Brokers and Van der Moolen have also bought into the ISE Stock Exchange, which will be an all-electronic operation.

The CBOE's decision to maintain a trading floor is in direct contradiction of industry trends for closing down floors and swithing to all electronic trading. But the Chicago exchange argues that its hybrid trading system has been highly successful in the extremely competitive US options industry. In 2006, CBOE market share of total industry volume increased seven percentage points during H1, climbing from 30% in January to 37% at the end of June.

William Brodsky, chairman and CEO, CBOE, says: "This venture recognises the proven success of CBOE's hybrid market model, which enables professional brokers to represent customer orders in an open outcry environment that is integrated with a state-of-the-art electronic system offering sub-second execution.

"We believe the CBOE Stock Exchange and its hybrid market model can extend these same advantages to the stock world by providing it with this economical and proven alternative market."

CBSX is expected to launch in early 2007 and will provide an additional venue for the trading of New York Stock Exchange, Nasdaq and American Stock Exchange listed securities.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nomura, E*Trade and Van der Moolen invest in ISE Stock Exchange

Nomura, E*Trade and Van der Moolen invest in ISE Stock Exchange

24 July 2006  |  6721 views  |  0 comments
ISE to launch electronic equities trading platform

ISE to launch electronic equities trading platform

19 April 2006  |  10617 views  |  0 comments
ISE acquires Longitude technology and assets

ISE acquires Longitude technology and assets

04 April 2006  |  7893 views  |  0 comments
CBOE takes equity stake in HedgeStreet

CBOE takes equity stake in HedgeStreet

23 February 2006  |  5312 views  |  0 comments
CBOE and Philadelphia to follow BOX model

CBOE and Philadelphia to follow BOX model

15 January 2004  |  7548 views  |  0 comments
CBOE to use HyperFeed MEPS solution for auto-quote service

CBOE to use HyperFeed MEPS solution for auto-quote service

15 May 2003  |  7326 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.innotribe.comRegister now

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
19563 views comments | 29 tweets | 42 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15230 views comments | 23 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10996 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
9061 views comments | 14 tweets | 28 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job