SEC invites comments on Cboe EDGA Exchange proposal to expand Cboe Connect

Maria Nikolova

Cboe EDGA Exchange proposes to expand Cboe Connect to provide optional connectivity by which market participant may send orders to single-dealer trading platforms connected to the Exchange’s network.

The United States Securities and Exchange Commission (SEC) has earlier today published a notice to solicit comments from interested parties on rule changes proposed by Cboe EDGA Exchange, an equities exchange operated by Cboe Global Markets Inc (NASDAQ:CBOE).

In short, the Exchange has submitted a proposal to expand Cboe Connect to provide connectivity to single-dealer platforms connected to the Exchange’s network and to propose a per share executed fee for such service.

Cboe Connect is an optional communication service that provides Members an additional means to receive market data from and route orders to any destination connected to the Exchange’s network. Participants may also utilize Cboe Connect in case of a market disruption where other connection methods are unavailable.

At present, market participants are able to send orders directly to broker-dealers that operate single-dealer platforms, where broker-dealers would execute orders received on a principal basis or return the unexecuted order (or portion thereof) back to their customers. To connect to a single-dealer platform, the broker-dealer’s customer must purchase connectivity and perform the necessary infrastructure work to be able to send orders to that single-dealer platform. Cboe Connect allows participants to send orders to other exchanges and market centers that are connected to the Exchange’s network.

Market centers on the Exchange’s network include Alternative Trading Systems operated by broker-dealers, but do not currently include single-dealer platforms.

The Exchange proposes to expand Cboe Connect to provide optional connectivity by which market participant may send orders to these single-dealer trading platforms connected to the Exchange’s network. The exchange proposes to refer to this connectivity option under Cboe Connect as C-LNK.

Orders routed via Cboe Connect to a single-dealer platform would be treated the same as orders routed via Cboe Connect to an exchange or market center connected to the Exchange’s network. Cboe Connect does not effect trade executions and would not report trades to the relevant Securities Information Processor and the Exchange does not propose to do so for orders sent to single-dealer platforms.

The orders sent via the service to single-dealer platforms would be handled by the Exchange’s affiliated broker-dealer, Cboe Trading, Inc., and would bypass the EDGA Book before going to a market center outside of the Exchange. That is, a participant could choose to route an order directly to any single-dealer platform on the Exchange’s network.

The participant will be identifying the single-dealer platform for any orders sent through the service and will be ensuring that it had authority to access the selected destination, whereas the Exchange would provide the connectivity by which orders (and associated messages) could be sent by a participant to the single-dealer platform and from the destination back to the participant.

According to Cboe, C-LNK perfects the mechanism of a free and open market and a national market system as it offers users an optional connectivity method by which a market participant may send orders to these single-dealer trading platforms. The proposed connectivity to single-dealer platforms would operate in the same manner as connectively provided today to other exchanges and market centers via Cboe Connect.

Read this next

Inside View

Crypto Liquidity Providers: No Transaction, No Party!

One of the most integral parts of trading cryptocurrencies is ensuring seamless transactions; however, this is not always easy when you first start using cryptocurrency exchanges.

Digital Assets

Niftables launches white label NFT platform for content creators and brands

Niftables is the go-to platform for brands and creators looking to realize their NFT vision — whether they’re an individual or the biggest entertainment company in the world.

Retail FX

ACY Securities sponsors Table Tennis NSW as CFD broker bets in Australia’s youngest

ACY Securities has partnered with Table Tennis New South Wales (TTNSW) for a two-year sponsorship agreement intended to highlight the Chatswood-based multi-asset CFD broker’s brand in Australia, with a focus on the southeastern state.

Executive Moves

Peter Hetherington appointed CEO of,, and

With his extensive experience driving strategy and growth for leading wealth and brokerage firms in highly regulated markets, Peter is the ideal CEO to lead the Group on its next chapter of growth and success.”

Digital Assets

Crypto platform Elwood raises $70m from Goldman Sachs, Dawn, Barclays, BlockFi, Flow, Galaxy, more

Elwood Technologies has closed a $70 million Series A funding round co-led by Europe’s largest B2B investor Dawn Capital and global investment bank, Goldman Sachs.

Industry News

Wilshire to launch Climate Change 1.5℃ Target Index with Nikkei and Hang Seng

Wilshire has announced a collective launch with Nikkei and Hang Seng to bring to market the first in a series of indexes empowering investors to transition their investments towards a low-carbon and climate resilient economy.

Industry News

Anne Boden’s Starling Bank bets big on UEFA Women’s EURO 2022 tournament

Starling Bank has launched a campaign ahead of the UEFA Women’s EURO 2022 tournament as part of its national sponsorship, the biggest ever for the bank.

Industry News

Older adults flock to financial apps as Revolut reports 215% more UK users aged 55-74 since pandemic

Data has also shown that older adults are back to travelling as the 55-64 UK age group has seen a tenfold increase in the amount spent in foreign countries over the past two years, and the 64-75 age group isn’t far behind with an 840% increase.

Industry News

Ripple replies to SEC’s last attempt and “shoves it down their throats pretty hard”

“The SEC really messed that up. How can Hinman receive legal advice from SEC lawyers for a personal opinion?”, attorney Hogan commented.