Security and Data Privacy

In the CCS workflow presented in Cboe Compression Service Workflow, TPHs submit position information for compression. Information regarding TPH positions is treated as private and sensitive information, the same as all other data managed by the Exchange on behalf of the TPH including instructions received over order entry port connections and TPH execution information from live trading. TPHs upload positions and download compression portfolio and match data service through the same secure firm portal through which all other secure information exchanges are conducted.

Multilateral compression uses advanced computational algorithms to compute a portfolio that delivers maximum value, while satisfying constraints, to participating TPHs in a completely anonymous manner. No identifiable TPH information is used in the process of computing traded quantities for each participating TPH during compression portfolio construction. TPHs receive information regarding their trades only, without information on contra TPHs on the other side of their trades. Throughout the entire process, TPHs do not have access to other TPH positions, nor are they presented with information regarding the other side of any trade within the portfolio. Only after trades have cleared do TPHs receive standard trade reporting information from the OCC on the business day following the compression cycle, which includes contra TPH information.