Cboe Expects to Launch Real-Time Options Feed in March

by Arnab Shome
  • The feed will provide real-time pricing data from all four Cboe options exchanges.
  • Cboe captures 3 percent of the US options market volume.
cboe
Cboe

Cboe Global Markets (Cboe: CBOE) announced on Wednesday its expectation to launch the Cboe One Options Feed by 1 March 2023. It will be a single market data feed, providing a comprehensive and real-time view of options pricing.

Cboe to Launch Options Data Feed

Cboe is a major derivatives exchange operator in the United States. It runs four options exchanges, the Cboe Options, C2 Options, EDGX Options, and BZX Options Exchanges. These four exchanges handle 31 percent of all options trading volume in the US.

The new options data feed will fetch real-time pricing information from all four options exchanges of Cboe and aggregate the best bid and offer (BBO) of all displayed orders for equity, exchange-traded funds (ETFs), and index options.

"The launch of the Cboe One Options Feed aims to address the growth of the U.S. options market, which has seen the emergence of a new generation of investors that is increasingly utilizing options-based strategies in their portfolios," said Catherine Clay, the Executive VP of Data and Digital Solutions at Cboe Global Markets.

"Real-time pricing is an essential component of the investing and trading process, and customers are seeking more choices in how they receive options market data. As the largest U.S. options exchange operator, Cboe is uniquely positioned to bring a high-quality, cost-effective, and reliable alternative to existing offerings that will help investors gain a comprehensive view of the U.S. options market."

The upcoming data feed will complement Cboe's existing real-time data feed for the US and Canadian equities markets. All three data feeds will use the same protocol and message structure.

Further, the new Cboe One Options Feed will be hosted from the company's primary and secondary data centers in New Jersey and Illinois. Additionally, Cboe has plans to make the feed available globally through its cloud-based data streaming service, Cboe Global Cloud.

Cboe Is Expanding Its Footprint

With its dominance in the traditional finance industry, Cboe entered the digital asset industry last year. It acquired Eris Digital Holdings (ErisX), a Chicago-based crypto exchange, and rebranded it to Cboe Digital. The exchange offers cryptocurrency trading with spot and derivatives instruments.

Meanwhile, Cboe recently published its financials for the fourth quarter of 2022, as it closed the period with $457.1 million in net revenue, which is an uptick of 17 percent. Its options products remain the top revenue generator, bringing $273.2 million. Global FX brought in $16.9 million; the rest was generated from equities products.

It is now expecting to close the fiscal year of 2023 with 7 to 9 percent organic total net revenue growth.

"Since creating the first U.S. options exchange 50 years ago, Cboe has built and now operates some of the world's largest, most trusted, and resilient markets, where investors globally come to express their views and hedge their risk," said Cboe's Head of Derivatives and Global Client Services, Arianne Adams.

"We remain committed to providing our customers with best-in-class exchange platforms, tradable products, and market data. The Cboe One Options Feed is another solution that will provide customers with the real-time information they need to trade with confidence."

Cboe Global Markets (Cboe: CBOE) announced on Wednesday its expectation to launch the Cboe One Options Feed by 1 March 2023. It will be a single market data feed, providing a comprehensive and real-time view of options pricing.

Cboe to Launch Options Data Feed

Cboe is a major derivatives exchange operator in the United States. It runs four options exchanges, the Cboe Options, C2 Options, EDGX Options, and BZX Options Exchanges. These four exchanges handle 31 percent of all options trading volume in the US.

The new options data feed will fetch real-time pricing information from all four options exchanges of Cboe and aggregate the best bid and offer (BBO) of all displayed orders for equity, exchange-traded funds (ETFs), and index options.

"The launch of the Cboe One Options Feed aims to address the growth of the U.S. options market, which has seen the emergence of a new generation of investors that is increasingly utilizing options-based strategies in their portfolios," said Catherine Clay, the Executive VP of Data and Digital Solutions at Cboe Global Markets.

"Real-time pricing is an essential component of the investing and trading process, and customers are seeking more choices in how they receive options market data. As the largest U.S. options exchange operator, Cboe is uniquely positioned to bring a high-quality, cost-effective, and reliable alternative to existing offerings that will help investors gain a comprehensive view of the U.S. options market."

The upcoming data feed will complement Cboe's existing real-time data feed for the US and Canadian equities markets. All three data feeds will use the same protocol and message structure.

Further, the new Cboe One Options Feed will be hosted from the company's primary and secondary data centers in New Jersey and Illinois. Additionally, Cboe has plans to make the feed available globally through its cloud-based data streaming service, Cboe Global Cloud.

Cboe Is Expanding Its Footprint

With its dominance in the traditional finance industry, Cboe entered the digital asset industry last year. It acquired Eris Digital Holdings (ErisX), a Chicago-based crypto exchange, and rebranded it to Cboe Digital. The exchange offers cryptocurrency trading with spot and derivatives instruments.

Meanwhile, Cboe recently published its financials for the fourth quarter of 2022, as it closed the period with $457.1 million in net revenue, which is an uptick of 17 percent. Its options products remain the top revenue generator, bringing $273.2 million. Global FX brought in $16.9 million; the rest was generated from equities products.

It is now expecting to close the fiscal year of 2023 with 7 to 9 percent organic total net revenue growth.

"Since creating the first U.S. options exchange 50 years ago, Cboe has built and now operates some of the world's largest, most trusted, and resilient markets, where investors globally come to express their views and hedge their risk," said Cboe's Head of Derivatives and Global Client Services, Arianne Adams.

"We remain committed to providing our customers with best-in-class exchange platforms, tradable products, and market data. The Cboe One Options Feed is another solution that will provide customers with the real-time information they need to trade with confidence."

About the Author: Arnab Shome
Arnab Shome
  • 6315 Articles
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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.
  • 6315 Articles
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