Cboe Global Markets has secured commitment from a number of participants to support the launch of single stock options on Cboe Europe Derivatives (CEDX), Cboe Europe’s pan-European equity derivatives exchange.
CEDX expects to begin offering equity options from 6 November and plans to broaden its universe of available products by the end of Q1 2024. Firms that have committed to supporting CEDX’s expansion into equity options include existing participants ABN AMRO Clearing, All Options, Barak Market Making, Goldman Sachs, Morgan Stanley and Susquehanna International Securities.
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, Cboe’s leading pan-European clearing house.
Iouri Saroukhanov, head of European derivatives at 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 Europe as envisioned by CEDX, which is designed from a pan-European point-of-view, increases competition and lowers barriers to entry for institutional and retail investors. CEDX will offer first class levels of efficiencies to options participants from a trading and clearing perspective, including margin efficiencies and domestic stock settlement on options exercise, to help grow options markets in Europe.”
Interactive Investors CEO Milan Galik 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 the partnership with CEDX and the support of its single stock options launch, aligns with the firm’s mission to help grow European options markets for its clients.
Conor McCann, European head of derivative sales at Susquehanna International Securities, said: “As a global trader of listed options, we are supportive of any initiative that helps to advance these markets, particularly in Europe where there is room to develop the market to meet the needs of the retail user. We are excited to become a liquidity provider in CEDX’s equity options given the unique value proposition on offer, confidence in our ability to quote competitive prices and belief that there is genuine end-user demand for these products.”
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