Cboe EDGX Options Exchange

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Cboe EDGX Options Exchange
Founded 2015
Products Options trading
Website http://markets.cboe.com/us/options/

Cboe EDGX Options Exchange is one of four options markets owned by Cboe Global Markets.

Before Cboe acquired the exchange in the purchase of Bats Global Markets in 2017, EDGX was the second options exchange owned by Bats. Then named Bats EDGX Options, it launched on November 2, 2015. Cboe rebranded it as Cboe EDGX Options Exchange after the acquisition.[1]

EDGX is based on a customer priority/pro rata allocation model and is designed to complement the Cboe BZX Options Exchange, which is a pure price-time, maker-taker model market.

EDGX Options is located in the Equinix NY5 data center, where the other BATS U.S. equities and option markets and its institutional foreign exchange ECN, Hotspot, are located. Members could begin connecting to the new market on August 17, 2015.

History

Bats first filed with the SEC to launch EDGX as a second options exchange on April 16, 2015 [2] and received SEC approval for the exchange on August 10, 2015. With the launch of EDGX Options, Bats hoped to compete for a new segment of order flow that did not trade on the price-time markets that Bats operated. The pro-rata market accounted for about two-thirds of the trading in the overall U.S. options market at the time.[3]

In October 2019, Cboe announced it would launch a new retail program on Cboe EDGX Exchange, adding enhanced execution for individual investors trading US equities. The initiative added order book priority for order submitted on behalf of retail investors. The launch is scheduled for November 2019.[4]

Products and Services

Options trading with a customer priority/pro rata allocation model

Key People

References

  1. BATS Receives SEC Approval to Launch EDGX Options Market. BATS Global Markets.
  2. Bats to launch its 2nd, industry’s 13th, options exchange. Press Release via MarketsMedia.
  3. BATS gets green light for new options market offering. Kansas City Business Journal.
  4. Cboe to Launch Order Book Priority for Retail Investors on EDGX Exchange. Cboe.