The push for more substantial data capabilities and analytics solutions continues to define the institutional space in H2 2017 ahead of MiFID II. CBOE Europe Equities, the largest pan-European exchange by market share, has chosen big xyt for its Liquidity Cockpit. The strategic partnership will be instrumental in enabling more broad-based transparency to dark and lit liquidity.

big xyt currently boasts a wide range of data solutions – its XYT Hub and Liquidity Cockpit are household names in the industry, with the latter helping greatly foster improved liquidity transparency. Liquidity Cockpit was targeted by CBOE Europe for its prowess in navigating the fragmented liquidity market.

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MiFID II in focus

For its part, CBOE will be leveraging the Liquidity Cockpit to better meet European Securities and Markets Authority (ESMA) thresholds and obligations. More specifically, this will entail a detailed analysis of European market share across a regulatory landscape in transition.

Looking ahead to January 3, 2018, the MiFID II regime will be coming into effect, which promises to dramatically alter the regulatory playing filed. Consequently, the new laws will necessitate an imposition of caps on the amount of trading that can take place on dark venues.

Alex Dalley, Co-Head of Sales, CBOE Europe Equities, commented: “MiFID II will bring significant changes to European market structure and, consequently, the European liquidity landscape. By utilising big xyt’s Liquidity Cockpit, we are able to analyse the market quality of the new liquidity venues that have developed in response to MiFID II. We welcome the innovation that big xyt brings to the market and look forward to working with them.”

CBOE, like many other exchange venues, has been aggressively adapting ahead of the January deadline. The deadline has prompted demand for MiFID II compliant solutions from data venues and providers like big xyt and others. This is of particular relevance for CBOE Europe given the increased traction and volumes in its Large in Scale (LIS) trading activity.

With the industry in the midst of evolving regulation, CBOE has already implemented new trading services such as CBOE LIS and its periodic auctions. However, per the new regulations, market participants now have an acute need to recognize LIS classified trades, track market share and navigate interactions across existing and new liquidity pools – both dark and lit.

For this reason, Liquidity Cockpit will provide CBOE and its clients with a normalized view of granular tick data. Furthermore, the module will also seek to enable a better overview of market share across all major European venues and the ability to act on changing market dynamics.

Liquidity Cockpit is proficient in tracking changes in trade conditions and execution venues, applying custom measures such as LIS classified trades. Indeed, one of Liquidity Cockpit’s most vital functions is its ability predict the impact of dark volume caps.

“We are delighted that Cboe has chosen Liquidity Cockpit to provide them with an independent, consolidated view of pan-European trading activity reflecting essential changes in market structure like the growth of block trading or new auction types. We continue to work closely with the trading community to deliver solutions to optimise trading and execution performance through January 2018 and beyond,” explained Robin Mess, CEO of big xyt.