Bats Options

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Bats Options
Bats CBOE-200px.png
Founded 2010
Products Options trading

Bats Options refers to both of the options markets owned by Bats Global Markets: BZX Options (formerly BATS Options) and EDGX Options. Bats options was first launched as an electronic options on February 26, 2010. EDGX Options was launched on November 2, 2015.

Bats Global Markets, along with its subsidiary Bats Options, was acquired by the Chicago Board Options Exchange on February 28, 2017.

Bats BZX Options operates with price-time priority: orders at the best price are filled based on when they were received with the earliest executed first. It offers a maker-taker structure and will be the first U.S. options exchange to use flat pricing, charging 30 cents per contract to all liquidity takers and giving a rebate of 20 cents per contracts to all market makers, who add liquidity. [1]

EDGX Options is based on a customer priority/pro rata allocation model and is designed to complement Bats' BZX Options market.

This across-the-board price structure differs from the tiered pricing at NYSE Euronext’s Arca platform and Nasdaq NOM platform, the two exchanges that also have a maker-taker model. [2]

History

In its first year of trading, Bats Options was ranked as the world's 36th-largest derivatives exchange by volume in 2010, according to the annual volume survey published by the Futures Industry Association (FIA).[3] The FIA report, published in March of 2011, notes that the exchange's total volume for the year was about 25.1 million contracts.

Products and Services

Key People

Ken Conklin and Jeromee Johnson provided leadership in developing Bats Options Exchange.[4]

References

  1. New US options exchange battles for market space. The Financial Times.
  2. BATS Launches U.S. Options Trading. Securities Industry News.
  3. 2010 Annual Volume Survey. Futures Industry.org.
  4. BATS to Launch U.S. Options Exchange. BATS.