02:02 ET CBOE confirms it will launch the CBOE Stock Exchange :The CBOE announced today at a press conference in New York City that it is partnering with Interactive Brokers Group; LaBranche (LAB); Susquehanna International Group; and VDM Specialists to launch the CBOE Stock Exchange, a new securities trading marketplace. The CBOE Stock Exchange will feature a Hybrid market model that will combine elements of both screen and floor-based trading; and provide a new venue for the trading of New York Stock Exchange (NYX), NASDAQ Stock Market (NDAQ), and American Stock Exchange listed securities. CBSX is expected to launch in early 2007, pending final regulatory approval from the Securities and Exchange Commission. (Note that there were wire reports out earlier on this... see 13:41 comment)
OMG, how much "hybrid" is it ? I cannot believe IB participating in launching a new, non-100% electronic exchange. Given my experiences in SPX cash options, you are better off trading NYSE grrr
Floor based trading = another specialist to screw you. Unless it's 100% electronic, I don't see it offering much competition.
The most important part. It took NASDAQ 5 years to get exchange approval... So this will all be at the leisure of the SEC. Also... Another "hybrid" market will not threaten the NYSE. It's THE liquidity center for listed mid to small caps... (As much as 80-90% of trading, about 95% for my stocks)... And taking that away will require something entirely new.