Cboe Europe Derivatives Welcomes IMC as New Trading Participant
Cboe Europe Derivatives (CEDX) announces IMC as its latest direct trading participant. IMC, a global market maker known for its advanced technology and extensive liquidity provision, will access CEDX's range of pan-European index derivatives and equity options.
CEDX, which launched in September 2021, aims to enhance on-screen liquidity. The exchange now offers over 300 equity options across 14 countries, representing more than 90% of the current ADV and open interest for top European equity options. This expansion underscores CEDX's commitment to creating a more efficient European derivatives market.
- IMC, a leading global market maker, joins CEDX, boosting the exchange's liquidity.
- CEDX offers contracts on over 300 European companies, increasing its product range.
- CEDX's pan-European model lowers barriers to entry for derivatives trading.
- IMC's participation aligns with CEDX's goals to enhance and grow European derivatives markets.
- CEDX's equity options products cover 90% of ADV and open interest for top-600 European equity options.
- The exchange's single access point provides operational and capital efficiencies for participants.
- No specific financial data or performance metrics provided in the announcement.
- The potential increase in competition among trading participants could impact existing members.
Insights
The inclusion of IMC as a direct trading participant in Cboe Europe Derivatives (CEDX) signals a positive development for the liquidity and efficiency of the European derivatives market. IMC is a well-known market maker, providing significant liquidity across various financial instruments globally. Their participation could lower trading costs and enhance market efficiency, benefiting both institutional and retail investors.
From a short-term perspective, this development could increase the trading volume and liquidity on CEDX, potentially leading to tighter bid-ask spreads and better execution prices. In the long-term, the partnership aligns with CEDX's strategy to expand its product offerings and market reach, which could attract more participants and increase the exchange's market share in Europe.
Given the expansion of CEDX's range of equity options to over 300 contracts, the involvement of IMC could accelerate the adoption and trading activity of these new products. It’s important to note that higher liquidity in these options can improve price discovery and market stability.
From a financial perspective, the entry of IMC into CEDX could positively impact Cboe Global Markets' revenue streams. Increased trading activity on CEDX means higher transaction fee income, which is a critical revenue source for exchanges. Moreover, IMC's participation could attract other market makers and trading participants, leading to an overall increase in market activity.
Analyzing the broader implications, enhanced liquidity and trading efficiency on CEDX could result in increased institutional interest and investment in European derivatives. This could drive up the exchange's valuation and potentially lead to higher stock prices for Cboe Global Markets.
It's essential to consider potential drawbacks. High-frequency trading firms like IMC can sometimes lead to market volatility. However, given IMC's reputation for robust execution and advanced technology, these risks are likely mitigated.
- IMC joins Cboe Europe Derivatives as direct trading participant, gaining access to the exchange's suite of pan-European equity derivatives
- CEDX recently expanded its range of equity options and now offers contracts on over 300 European companies
Iouri Saroukhanov, Head of European Derivatives at Cboe Europe, said: "We are thrilled to welcome IMC to CEDX and further diversify the types of liquidity the exchange is offering to its institutional and retail participants. The support of a firm of IMC's calibre demonstrates the broad appeal of CEDX, which is lowering barriers to entry for European derivatives through its pan-European model and promotion of deep and liquid on-screen markets. We look forward to IMC's active participation across our range of equity derivatives and supporting us on our journey to create a larger and more efficient European derivatives market."
IMC is a leading global market maker that trades in all major asset classes on more than 100 trading venues around the world. Founded in 1989, it was one of the first trading houses to recognise the importance of technology in the fast-evolving financial markets environment and today is known worldwide for its advanced, low-latency technology and world-class execution capabilities. With offices in
Koen Langemeijer, IMC Europe Market Making Lead, said: "We are very excited to become a direct trading participant on CEDX and provide liquidity across the exchange's range of pan-European equity derivatives contracts. We are strongly aligned with CEDX's ambitions to enhance and grow
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 is designed to promote on-screen liquidity and offers a single access point to pan-European equity derivatives products, creating significant operational and capital efficiencies for participants.
CEDX expanded into equity options in November 2023, and broadened its universe of these products during Q1 2024. It now offers more than 300 options on companies from 14 countries (
Further information about CEDX's equity options 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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FAQ
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