Cboe BIDS Australia Will Launch Services on 27 March

Tuesday, 21/03/2023 | 08:39 GMT by Arnab Shome
  • The platform will have a two-phase launch.
  • Its European sister has become the largest electronic block trading platform.
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Cboe Australia has confirmed that operations under Cboe BIDS Australia (BIDS) will go live on 27 March 2023 after meeting final regulatory as well as other requirements.

Two-Phase Launch of Cboe BIDS Australia

In Australia, BIDS will launch in two phases. Initially, limited access to BIDS will be provided to Cboe Australia market participants. Cboe Australia did not determine the launch date of the second phase, which will enable buy-side firms to access the service through the BIDS Trader front-end interface.

BIDS Australia operates with an Australian Market License, offering block and large-sized matching and execution services. It allows buy and sell side traders to anonymously trade equities in bulk, thus minimizing the risk of leakage.

Cboe acquired BIDS Trading, the largest block-trading alternative trading system (ATS) by volume in the US, in 2021. The acquisition provided Cboe, the operator of one of the largest derivatives exchanges in the US, with further inroads into the expanding world of off-exchange trading.

The Dominance of Cboe

Subsidiaries of Cboe BIDS are already operating in Europe and Canada. Cboe BIDS Europe has become the largest electronic block trading platform with €464 million in average daily volume and €1.3 million in buy-side average trade size, according to the figures released last September. The European platform captures 36 percent of the market share.

While the Australian launch is coming next week, Cboe BIDS' Japanese subsidiary is also expected to initiate operations in the fourth quarter of 2023.

"Cboe Australia has amended the Operating Rules (Rules) and Operating Rules: Procedures (Procedures) to accommodate the launch of the launch of BIDS," the announcement noted. "The new Rules and Procedures apply from today, 20 March 2023, ahead of the BIDS launch."

Cboe Global Markets ended 2022 with a revenue of $1.7 billion, which is an uptick of 18 percent. It generated $457.1 million in net revenue in the fourth quarter of 2022, which is again an increase of 17 percent. Options contracts were the major revenue source, while Cboe's digital division "generated negative revenue." The diluted EPS for the year went down by 55 percent to $2.19, while the adjusted figure strengthened by 15 percent to $6.93.

Meanwhile, Cboe is expanding its services. Earlier this month, it launched a single market data feed, Cboe Options One Feed, providing a comprehensive and real-time view of options pricing.

Cboe Australia has confirmed that operations under Cboe BIDS Australia (BIDS) will go live on 27 March 2023 after meeting final regulatory as well as other requirements.

Two-Phase Launch of Cboe BIDS Australia

In Australia, BIDS will launch in two phases. Initially, limited access to BIDS will be provided to Cboe Australia market participants. Cboe Australia did not determine the launch date of the second phase, which will enable buy-side firms to access the service through the BIDS Trader front-end interface.

BIDS Australia operates with an Australian Market License, offering block and large-sized matching and execution services. It allows buy and sell side traders to anonymously trade equities in bulk, thus minimizing the risk of leakage.

Cboe acquired BIDS Trading, the largest block-trading alternative trading system (ATS) by volume in the US, in 2021. The acquisition provided Cboe, the operator of one of the largest derivatives exchanges in the US, with further inroads into the expanding world of off-exchange trading.

The Dominance of Cboe

Subsidiaries of Cboe BIDS are already operating in Europe and Canada. Cboe BIDS Europe has become the largest electronic block trading platform with €464 million in average daily volume and €1.3 million in buy-side average trade size, according to the figures released last September. The European platform captures 36 percent of the market share.

While the Australian launch is coming next week, Cboe BIDS' Japanese subsidiary is also expected to initiate operations in the fourth quarter of 2023.

"Cboe Australia has amended the Operating Rules (Rules) and Operating Rules: Procedures (Procedures) to accommodate the launch of the launch of BIDS," the announcement noted. "The new Rules and Procedures apply from today, 20 March 2023, ahead of the BIDS launch."

Cboe Global Markets ended 2022 with a revenue of $1.7 billion, which is an uptick of 18 percent. It generated $457.1 million in net revenue in the fourth quarter of 2022, which is again an increase of 17 percent. Options contracts were the major revenue source, while Cboe's digital division "generated negative revenue." The diluted EPS for the year went down by 55 percent to $2.19, while the adjusted figure strengthened by 15 percent to $6.93.

Meanwhile, Cboe is expanding its services. Earlier this month, it launched a single market data feed, Cboe Options One Feed, providing a comprehensive and real-time view of options pricing.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6421 Articles
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