Cboe Europe Derivatives Secures Support of Key Participants for Single Stock Options Launch
- CEDX expects to begin offering equity options from 6 November
- CEDX plans to broaden its universe of available products by the end of Q1 2024
- Interactive Brokers will provide its clients with access to the suite of pan-European equity derivatives offered by CEDX
- CEDX will offer first-class levels of efficiencies to options participants, including margin efficiencies and domestic stock settlement on options exercise
- CEDX will make single stock products available for trading from 6 November 2023
- CEDX plans to broaden the available universe of underlying stocks in Q1 2024
- CEDX will clear single stock options through Cboe Clear Europe N.V., allowing the use of underlying stocks as collateral and delivering potential initial margin reduction
- Stock settlement on options exercise and assignment will take place in domestic Central Securities Depositories (CSDs), allowing for settlement netting with relevant cash equities transactions
- None.
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
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
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 (
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
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
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Cautionary Statements Regarding Forward-Looking Information
Certain information contained in this press release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.
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SOURCE Cboe Global Markets, Inc.
FAQ
When will CEDX begin offering equity options?
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What efficiencies will CEDX offer to options participants?
When will single stock products be available for trading on CEDX?
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