AMSTERDAM and LONDON, Oct. 18,
2023 /PRNewswire/ -- Cboe Global Markets Inc. (Cboe:
CBOE) today announced it has secured commitment from of a broad
range of participants to support the launch of single stock options
on Cboe Europe Derivatives (CEDX), Cboe Europe B.V.'s pan-European
equity derivatives exchange. CEDX expects to begin offering equity
options from 6 November and plans to broaden its universe of
available products by the end of Q1 2024, subject to regulatory
approvals.
Firms that have committed to supporting CEDX's expansion
into equity options include existing participants ABN AMRO
Clearing, All Options, Barak Market Making B.V, Goldman Sachs,
Morgan Stanley and Susquehanna International Securities. In
addition, Interactive Brokers has also committed to connecting to
CEDX to provide its clients with access to the suite of
pan-European equity derivatives offered by the exchange, including
single stock products. Interactive Brokers will become a direct
trading participant on CEDX and a direct clearing participant for
equity derivatives on Cboe Clear Europe N.V., Cboe's leading
pan-European clearing house.
Iouri Saroukhanov, Head of European Derivatives, Cboe Europe,
said: "We are delighted to have secured the support of such a
strong group of participants to support the launch of single stock
options on CEDX. Their support demonstrates the need for a more
efficient options marketplace in Europe as envisioned by CEDX, which is
designed from a pan-European point-of-view, increases competition
and lowers barriers to entry for institutional and retail
investors. CEDX will offer first class levels of efficiencies to
options participants from a trading and clearing perspective,
including margin efficiencies and domestic stock settlement on
options exercise, to help grow options markets in Europe."
Milan Galik, Chief Executive Officer at Interactive
Brokers, said: "We're thrilled to incorporate access to CEDX, which
aligns with our dedication to offering clients an extensive range
of global investment products. We applaud Cboe's roll-out of
European equity derivatives and believe this move will stimulate
more market activity, enriching the portfolio of investment
opportunities for our clients."
Joe Nehorai, Co-Head, Global Listed Derivatives at Goldman
Sachs, said: "We are delighted to expand our partnership with CEDX
and support its single stock options launch, which aligns with our
desire to help grow European options markets for our clients."
Conor McCann, European Head of
Derivative Sales at Susquehanna International Securities Limited,
said: "As a global trader of listed options, we are supportive of
any initiative that helps to advance these markets, particularly in
Europe where there is room to
develop the market to meet the needs of the retail user. We are
excited to become a liquidity provider in CEDX's equity options
given the unique value proposition on offer, confidence in our
ability to quote competitive prices and belief that there is
genuine end-user demand for these products."
Jerome Bedouet, Head of Derivatives Distribution EMEA at
Morgan Stanley, said: "We look forward to partnering with CEDX on
their expansion into equity options allowing our clients the
benefit of greater liquidity and more choice."
CEDX launched in September 2021,
initially offering trading in futures and options based on key Cboe
Europe single country and pan-European indices, with clearing
provided by Cboe Clear Europe. N.V. The exchange has been designed
to promote on-screen liquidity and offers a single access point to
pan-European equity derivatives products, creating significant
operational and capital efficiencies to participants.
CEDX expects to make single stock products available for trading
from 6 November 2023, when it will
offer options on 133 companies from 12 European countries
(Belgium, Denmark, Finland, France, 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. CEDX plans to broaden the available universe of
underlying stocks in Q1 2024, subject to regulatory approvals, and
plans to commence its Liquidity Provider Programme for all equity
options after the March 2024 expiry
period, aligning with readiness from a broad range of participants
to trade these products.
Single stock options traded on CEDX will be cleared by Cboe
Clear Europe N.V., which will permit the use of underlying stocks
as collateral to provide offsets against matched equity option
positions, delivering a potential initial margin reduction for a
covered call position of around 70%, according to initial estimates
by Cboe Clear Europe B.V. Furthermore, stock settlement (on options
exercise and assignment) will take place in domestic Central
Securities Depositories (CSDs), removing unnecessary costs and
allowing for settlement netting with relevant cash equities
transactions.
Additional information about CEDX's single stock products is
available here.
About Cboe Global Markets Inc.
Cboe Global Markets (Cboe: CBOE), the world's leading
derivatives and securities exchange network, delivers cutting-edge
trading, clearing and investment solutions to people around the
world. Cboe provides trading solutions and products in multiple
asset classes, including equities, derivatives, FX, and digital
assets, across North America,
Europe and Asia Pacific. Above all, we are committed to
building a trusted, inclusive global marketplace that enables
people to pursue a sustainable financial future. To learn more
about the Exchange for the World Stage, visit www.cboe.com.
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Analyst
Contact
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Tim
Cave
+44 (0)
7593-506-719
tcave@cboe.com
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Angela
Tu
+1-646-856-8734
atu@cboe.com
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Kenneth Hill,
CFA
+1-312-786-7559
khill@cboe.com
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Cautionary Statements Regarding Forward-Looking Information
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SOURCE Cboe Global Markets, Inc.