Printing and Clearing Stock Legs

Cboe Options uses TD Securities (USA) LLC Execution Services (TD Securities (USA) LLC) for printing and clearing stock legs. For QCC orders only, Penserra, FOG Equities, Libucki & Co., and SRT Securities, all via NYSE Chicago, serve as possible destinations for printing and clearing stock legs. A two-sided cross of the stock leg at a price determined by the ME is submitted to the appropriate venue (i.e., TD Securities (USA) LLC, Penserra, FOG Equities, Libucki & Co., or SRT Securities) according to order instructions. These venues can reject the cross if they deem it to be at an impermissible price based on their own view of the market data (i.e., Reg SHO violation). Options Members must have agreements in place with any broker included on the order instructions and will clear using one of two methods:

• Members must have a valid equity MPID for the broker specified on the order instruction. Cboe will send this MPID to the broker.
  • Member trades sent to TD Securities (USA) LLC will be reported for clearing to DTCC via ACT.
  • Member trades sent to any other venue will be reported for clearing to DTCC via NYSE Chicago.

The Cboe Options Trading Floor acts as a backup for TD Securities (USA) LLC in the event of system issues. The Trade Desk will have the ability to manually re-route all Complex with Stock orders to the Floor.