Cboe Europe Derivatives goes live with Equity Options on November 6
Prominent firms supporting CEDX’s expansion into equity options include ABN AMRO Clearing, All Options, Barak Market Making B.V, Goldman Sachs, Morgan Stanley, and Susquehanna International Securities. Interactive Brokers has also committed to connecting to CEDX to offer its clients access to the exchange’s suite of pan-European equity derivatives.
Cboe has announced today that it has secured commitments from a wide range of financial firms to support the launch of single stock options on Cboe Europe Derivatives (CEDX), its pan-European equity derivatives exchange.
The new offerings are set to go live on November 6 and will expand further by the end of Q1 2024, subject to regulatory approvals.
Interactive Brokers among prominent firms supporting CEDX’s equity options offering
Prominent firms supporting CEDX’s expansion into equity options include ABN AMRO Clearing, All Options, Barak Market Making B.V, Goldman Sachs, Morgan Stanley, and Susquehanna International Securities. Interactive Brokers has also committed to connecting to CEDX to offer its clients access to the exchange’s suite of pan-European equity derivatives.
Iouri Saroukhanov, Head of European Derivatives at Cboe Europe, expressed satisfaction with the broad support. “Their support demonstrates the need for a more efficient options marketplace in Europe as envisioned by CEDX,” he said.
Milan Galik, Chief Executive Officer at Interactive Brokers, echoed the sentiment, saying, “We applaud Cboe’s roll-out of European equity derivatives and believe this move will stimulate more market activity.”
CEDX plans to offer options on 133 European stocks
CEDX was launched in September 2021, initially offering trading in futures and options based on key Cboe Europe single country and pan-European indices. The platform aims to offer a single access point to pan-European equity derivatives, enhancing operational and capital efficiencies for participants.
Starting November 6, CEDX plans to offer options on 133 companies from 12 European countries, covering about 70% of the current average daily volume (ADV) and open interest for the top 600 European equity options. The platform also plans to initiate its Liquidity Provider Programme for all equity options after the March 2024 expiry period.
Single stock options traded on CEDX will be cleared by Cboe Clear Europe N.V., which will allow the use of underlying stocks as collateral.
This feature could deliver an initial margin reduction for a covered call position of around 70%, according to initial estimates by Cboe Clear Europe B.V. Stock settlement will also take place in domestic Central Securities Depositories (CSDs), further reducing costs.
The move to introduce single stock options on CEDX is seen as a game-changer for European equity options markets. The broad industry support indicates not only the demand for more efficient trading options but also the potential for increased market activity and investment opportunities.
ION offers direct access to CEDX
In August, ION announced the launch of direct access to Cboe Europe Derivatives (CEDX) on its XTP Execution solution, an all-in-one solution utilized by Tier 1 banks and global brokers.
The XTP solution offers fully automated trade workflow with integrated order management, advanced order execution, and connectivity to global markets.
The addition of CEDX further extends XTP Execution‘s market coverage for ION’s customers and their end clients by offering futures and options on key single-country and pan-European equity indices.
The launch came ahead. of the expansion into pan-European single stock options. ION’s XTP Execution is thus promoting connectivity and lower barriers to entry for the exchange’s customers, as part of its overall mission of providing trading, analytics, treasury, and risk management solutions.
