Chicago Stock Exchange set to decommission SNAP and outbound routing service

Maria Nikolova

Since the initial launch of the outbound routing service in May 2015 and SNAP in June 2016, neither product has seen active use by participants.

The United States Securities and Exchange Commission (SEC) is inviting comments on plans by the Chicago Stock Exchange, Inc. (CHX) to amend its rules to decommission the Exchange’s outbound routing service and the Sub-second Non-displayed Auction Process (SNAP).

The Exchange explains that, since the initial launch of the outbound routing service in May 2015 and SNAP in June 2016, neither product has been frequently or actively utilized by participants. Accordingly, to streamline its product offerings and to reallocate its resources to other initiatives and obligations, CHX proposes to decommission the outbound routing service and SNAP as of December 31, 2018.

On the Operative Date, the Exchange’s outbound routing broker-dealer, CHXBD, LLC, will cease business operations and all inbound orders received by CHX will be handled Do Not Route.

With respect to SNAP, the Exchange deactivated the Start SNAP, Cancel On SNAP, and SNAP Auction Only Order order modifiers as of August 16, 2018. As SNAP Cycles can only be initiated upon receipt of a valid Start SNAP order or pursuant to the Exchange’s pro forma review of the SNAP AOO queue, CHX does not currently conduct any SNAP auctions. Hence, elimination of the SNAP-related Rules is set to have no impact on the current operation of the Matching System.

The Exchange notes that it is not required by rule or regulation to provide outbound routing services and that its participants will continue to be able to route orders to away markets either directly or through another routing service.

Interested persons are invited to submit electronic comments via the Commission’s Internet comment form (http://www.sec.gov/rules/sro.shtml); or via an e-mail to [email protected] Please include File Number SR-CHX-2018-09 on the subject line.

Paper comments have to be sent in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-CHX-2018-09.

Read this next

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

Digital Assets

Thailand closer to launch digital asset exchange “to serve the needs of younger generations”

TDX is a subsidiary of the Stock Exchange of Thailand (SET) and its incorporation is part of the group’s strategic position to connect capital markets, open opportunities for the business sector in raising funds and cater to investment demand of new generations.

Digital Assets

Russia to legalize cryptocurrency payments as sanctions bite

Russia could soon be the latest country to lay down ground rules for legalizing cryptocurrencies as a means of payment, a sign that governments around the world are realizing that digital assets are here to stay.

Institutional FX

XTX Markets UK reports lackluster results for 2021

The UK business of XTX Markets, a non-bank FX liquidity provider and market maker, has reported its financials for the fiscal year ending December 31, 2021. The report showed impressive metrics after seeing revenues and customer activity increase even as the pandemic trading boom fizzled out.

Digital Assets

Binance in talks with BaFin to get license in Germany

Changpeng Zhao (CZ), founder and CEO of Binance has confirmed that they are in talks with Germany’s regulators to secure a local crypto license.

<