European Single Stock Options

Trade single stock options from across Europe on one, efficient marketplace, alongside the largest pan-European equities exchange

Cboe Europe Derivatives (CEDX) is building a pan-European marketplace for single stock options. CEDX will begin offering options on leading European companies from 6 November 2023, with clearing provided by Cboe Clear Europe, the leading pan-European clearing house, subject to regulatory approvals.

Key Features

Clearing Efficiencies: All CEDX products are cleared by Cboe Clear Europe, one of the region’s largest cash equities CCPs. This allows for significant operational and margin efficiencies. With the introduction of single stock options clearing, the use of underlying stocks to provide offsets against matched equity option positions will be available*. This equates to a potential initial margin reduction for a covered call position of around 70%**.

Domestic Settlement: Stock settlement (on options exercise and assignment) takes place in domestic CSDs, removing unnecessary costs and allowing for netting with relevant cash equities transactions.

Market Structure: CEDX is leveraging Cboe’s US options leadership to promote deep and liquid on-screen options markets in Europe, helping to attract new participants and grow the market overall.

Lower Fees: CEDX will offer a simple tariff structure for equity options with lower trading and clearing fees compared to competing products. CEDX’s market data and connectivity fees are waived until the end of 2024.

Broad Product Coverage: CEDX offers a single access point to hundreds of pan-European single stock options, creating simplicity and unrivalled cost efficiencies for participants.

Complex Strategies: Options strategies with an equity leg delta attached can be traded as a single package, removing uncertainty around hedging and allowing for more precise targeting of volatility levels.

(*subject to regulatory approvals, **Based on Cboe Clear Europe estimates.)

Product Coverage

Phase One

Phase one is scheduled for November 6 2023, covering 133 equity options from 12 European countries (Belgium, Denmark, France, Finland, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland and the UK). These products amount to 70% of current ADV and open interest for the top 600 European equity options.

See list of phase one product coverage here.

Phase Two

Options on stocks from a wider range of countries will be introduced, starting from February 2024.

Documentation

Timeline to launch

New multicast groups heart beating in PROD	6 March 2023
Participant testing to commence in CERT Test symbols only, for simple book, complex book and block trading functionality	24 April 2023
Additional functionality available for testing in CERT As above, adding minimal representative symbols and AIM, C-AIM, C-RFQ and Closing process functionalities	29 May 2023
Full representative symbology available for testing in CERT As above for full symbology rather than test symbols	24 July 2023
All functionality available for participant testing in CERT As above, adding complex with equity leg functionality	21 August 2023
Weekend testing	7 October 2023 28 October 2023 4 November 2023
Launch of Phase 1 Single Stock Options	6 November 2023
Launch of Phase 2 Single Stock Options	February 2024

Contact Us

Elena Patimova: Director, Derivatives Sales
Phone: (+44) 773.199.1453
E-mail: [email protected]

Taotao Xing: Director, Derivatives Sales
Phone: (+44) 789.498.9464
E-mail: [email protected]

Disclaimer

This information is not being provided as part of an offer or sale of any futures or options products to any persons located within the United States.