A Focus on Quality Markets
There are many venues traders can use to execute their options trades and strategies. At Cboe, our team works diligently to ensure our market is a leader in execution quality for our Members, giving them access to cutting-edge tools and services that help them manage risk while executing their trading strategies.
Innovative Pricing – Driving a Quality Market for All Participants
Our market quality economic incentives are designed to incent behaviors on an order by order basis to help improve the quality of the Cboe Options Exchanges. As a result, all trading participants realize the benefit of trading on Cboe, whether they received the economic incentive directly or if they simply benefits from tighter, deeper markets and better fills.
Innovative Tools to Manage Risk
The Cboe Options Exchanges offer a suite of risk management tools designed to help customers mitigate risk, which helps keep markets safer. Cboe believes that a multi-layered approach to risk management, with various risk checks in place both on the customer and exchange level throughout the life of an order, is fundamental to ensuring markets remain resilient.
Great Technology Backed by Great People
Today’s markets are nearly all electronic, but it’s the people behind the technology that matters. It’s our people that set Cboe apart from the competition. Our team of market and technology professionals created and oversees our markets. We’ve built our reputation on building world-class technology that delivers results and a team that provides best-in-class customer service.
Cboe strives to provide traders with tools and services to better help them manage their trading activities. Some of the additional features our options exchanges are listed below.
Cboe Compression Service - Designed in collaboration with Cboe TPHs, the Cboe Compression Service frees up capital ultimately providing for deeper liquidity and more efficient markets.
Bulk Quoting – Bulk orders give users the opportunity to place new orders, and modify or cancel existing orders pertaining to multiple contracts for a single OSI root.
- Display-Price Sliding – Enables firms to slide orders that lock or cross the NBBO.
- Match Trade Prevention – Allows firms to avoid unintentional trading with their own firms.
- Options Clearing Editor – Provides traders with the ability to make post-trade revisions to executions.
- Partial Post Only @ Limit – Offers enhanced liquidity adding with controlled liquidity removal.
- Real-Time Latency Monitoring – Innovative web tool designed to provide customers with real-time latency statistics for each order entry point.
- Web Products – Our U.S. Web Portal designed to give customers easy, online access to the information they need, when they need it.
Cboe Approved Jurisdictions
Cboe Rule 3.5
Cboe Rule 3.5 provides that each individual Trading Permit Holder (TPH) must be domiciled in or each TPH organization must be organized under the laws of a jurisdiction expressly approved by the Exchange, and will be subject to the jurisdiction of the federal courts of the United States and the courts of the state of Illinois.
A TPH prior to acting as agent for a customer, must be able to provide information regarding the customer and the customer's trading activities to the Exchange in response to a regulatory request for information pursuant to the rules of the Exchange. To the extent an individual or organization is required by an applicable law, rule or regulation to obtain written consent from a customer to permit the provision of this information to the Exchange, the TPH must obtain such consent.
The Exchange may at any time determine that a TPH can no longer comply with this Rule 3.5. In that event, the TPH will have three months following the date of that determination to come into compliance with this Rule 3.5. If a TPH does not come into compliance during that time period, the Exchange may terminate the TPH's status as a TPH.
The following is a list of jurisdictions approved by Cboe:
- British Virgin Islands
- Cayman Islands
- Czech Republic*
- Hong Kong*
- Isle of Jersey
- United Arab Emirates
- United Kingdom
- United States
[FN1] Cboe reminds TPHs that the submission of orders from foreign jurisdictions must comply with all applicable legal and regulatory requirements.
[FN2] Taiwanese TPHs may only enter orders and execute transactions on Cboe in Cboe products approved for trading in Taiwan and not in any other Cboe products. A list of approved products can be found in the supplemental application form.