SPX Monthly options to be "more" electronic

Discussion in 'Options' started by FSU, Feb 28, 2018.

  1. FSU

    FSU

    Currently SPX monthly AM settled options are treated differently then all the other SPX options. Brokers hold orders that are displayed on the screen, so it is possible that you may not be filled for some time, even when paying the offer. Also if you are a "professional" your orders are routed to a broker, or if your order is over a certain size.

    The CBOE announced that these monthly options will transition to the same Hybrid system that the SPXW's trade. You will now have multiple quoters for these options and you should see much tighter markets quoted once this transition takes place.

    Should be good news if you trade the SPX

    http://www.cboe.com/publish/regcir/rg17-136.pdf
     
  2. Sig

    Sig

    I don't trade AM at the moment but good news for those who do. Unfortunately I think we'll still be subject to the issue where brokers can arbitrarily decide to send orders over a certain arbitrary size "to the floor" where they'll sit, just like they do with the weeklies now? I wish they'd just get rid of the "hybrid" part of it altogether and go pure electronic.
     
  3. Nice! I see vols for SPXW are make progress Capture.JPG
     
  4. FSU

    FSU

    New system in the SPX will start April 30th.
     
  5. Feb-19 ADV 283,784
    Jan-19 ADV
    320,117
    Dec-18 ADV
    466,113
    Nov-18 ADV
    355,347
    Oct-18 ADV
    484,042
    Sep-18 ADV
    302,955

    Looks like volumes haven't changed much since 2017, maybe even lower.