Overview

The post-Brexit Transition period agreed between the UK and the EU is due to end on 31 December 2020. Accordingly, when trading in 2021 begins on 4 January, there may be restrictions on the ability of UK firms to access EU venues and EU firms to access UK venues. Participants of Cboe UK and Cboe NL should confirm their own situation and access only those venues and those products which they are legally permitted to.

Cboe Europe enacted its Brexit contingency plan in October 2019, when its Amsterdam-based venue, Cboe NL, went live offering trading in European Economic Area (EEA) securities. The products and services offered on Cboe UK and Cboe NL are listed in the Product Coverage section below.

Product Coverage

*Subject to regulatory confirmation

Cboe LIS

Cboe UK will continue to offer the LIS product across 18 country segments and be reported as LISX. Cboe NL will offer the LIS product from January 2021* across 16 EU country segments, with trades reported as LISZ (Subject to regulatory non-objection and confirmation from Cboe NL).

Users accessing via BIDS Trader or their vendor will be required to sign the LIS user order form and have a designated broker who is a member of Cboe NL.

Connectivity

Buy-side users via BIDS Trader - No change

Sell-side Participants - New inbound and drop copy ports will be required to access Cboe NL LIS

Further information can be found on the LIS Trade Desk Notice.

Transaction Reporting

As part of Cboe’s Brexit programme, there are transaction reporting requirements that arise under Cboe’s Rules when a Participant conducts cross border trading. Cross border trading is defined as trading activity conducted by a Participant that is not subject to a direct transaction reporting obligation in the jurisdiction in which the relevant Cboe venue is located. To ensure continuity of access on completion of the UK’s transition period, impacted Participants are required to certify for a transaction reporting solution by Friday 30th October 2020.

Impacted Participants

Existing non-UK or EEA regulated firms will need to continue to transaction report on the relevant Cboe venue, as appropriate.

On completion of the UK’s transition period, the following Participants will additionally be in scope:

  • UK regulated firms who plan on conducting trading activity on the Cboe NL venue (DXE)
  • EEA regulated firms who plan on conducting trading activity on the Cboe UK venue (BXE/CXE)

Trading activity in scope for Transaction Reporting

Cboe Europe Venue Jurisdiction in which the trading firm is regulated Trading Activity
Cboe NL (DXE) External to EEA (i.e. UK, Swiss, etc.)

Order Book Executions

Cboe LIS Direct User **

Cboe LIS Designated Broker **

Single Party ETR not submitted for EOD settlement

Multi-Party ETR not submitted for EOD settlement

Third Party Broker ETR
Cboe UK (CXE/BXE) External to UK (i.e. EEA, Swiss, etc.)

Order Book Executions

Cboe LIS Direct User

Cboe LIS Designated Broker

Single Party ETR not submitted for EOD settlement

Multi-Party ETR not submitted for EOD settlement

Third Party Broker ETR

**subject to regulatory approval

Transaction Reporting Solutions

Cboe Regulatory Transaction Reporting Gateway

Participants should use the Cboe Regulatory Transaction Reporting Gateway (RTRG) service to submit transaction reports to Cboe who will then forward them onto the relevant regulator. The specification for this service can be found here and Participants who need to begin using this service should contact the Trade Desk to begin onboarding and certification.

Participants are able to use service providers such as Unavista who have technically certified for RTRG though an individual Participant certification will still be required to ensure correct transaction report data is sent to Cboe. Please contact the Trade Desk to begin onboarding and certification.

Cboe Deal Capacity Offering

The introduction of Participant short code information on orders through MIFID II means that (if used correctly) Cboe have the information required to generate transaction reports for clients conducting trading activity in a Deal (Principal) capacity. Participants opting in to this offering will have transactions for their order book executions generated and sent to the required regulator by Cboe.

Participants can opt-in to this offering at a bank code (clearing firm) level. However, please note that, orders matching the below, along with any non EOD ETRs that are submitted via bank codes that are opted-in, will be rejected:

  • AOTC (Agency) orders
  • MTCH (Riskless) orders
  • Orders submitted without both an execution and investment short code
  • Orders submitted with non-registered short codes. For a registration to be considered valid, it must be uploaded by 5am UK time on the day it is to be used. Any registrations after this time will not take effect until the next trading day.

In addition, Participants must:

Participants wishing to use this offering should contact their Account Manager who can provide the next steps.

Certification Deadline

To guarantee readiness, please ensure you have successfully certified and on-boarded for one of the above transaction reporting solutions by no later than Friday 30th October 2020. Any impacted Participants who have not certified for a transaction reporting solution by this date will risk having access to the out of jurisdiction Cboe venue (depending on entity registration) and will be suspended effective Monday 4th January 2021.

Further details on the RTRG service can be found in the RTRG Specification. For any general membership and RTRG queries, please contact your Account Manager. If your query is regarding the technical onboarding please contact the Trade Desk.

Pricing

The fees schedules that apply for Cboe UK and Cboe NL can be found in our document library here.

FAQs

A comprehensive list of FAQs can be found here.