The launch of actively quoted complex orders on Cboe Global Markets

Discussion in 'Options' started by ajacobson, Jun 15, 2024.

  1. ajacobson

    ajacobson

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    • 1stVice President, Global Head of Client Engagement, Data & Access Solutions at Cboe Global MarketsVice President, Global Head of Client Engagement, Data & Access Solutions at Cboe Global Markets
    1d •

    • 1 day ago

      The launch of actively quoted complex orders on Cboe Global Markets later this month could be a game-changer for listed options and Chloe Grace Moretz just posted a great video showing how traders and market-makers can interact with these structures to seek alpha and manage risk
     
    FSU likes this.
  2. FSU

    FSU

    Would like to learn more about this. Any information other than the Linkedin link?
     
  3. 2rosy

    2rosy

    Is this a combinatorial auction or more like implied in/out. Or something else?
     
  4. ajacobson

    ajacobson

    Video on the CBOE sight by Chloe Grace according to the post. The video was live on Linkedin under Henry's post.
     
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  6. FSU

    FSU

    Interesting, thanks for the post.
    It seems there will be specific symbols for different boxes/rolls etc and only a small number of spreads will be included in the program.

    Not clear to me if you will simply be able to see the quote of the spread and trade it just by using this symbol or if you will need to view the COB itself. And will all brokers provide quotes using this symbol?
     
  7. taowave

    taowave

    Good old Henry
     
  8. My understanding is that it's going to be a separate order book for each symbol, you transact on the symbol but get filled as a spread. Similar to how listed spreads work in the futures space, while role of COB is played by the RFQ there. The idea is that it would create concentrated liquidity in these spreads as opposed to making it "by appointment" like it works out in COB. For example, I can see listed jellyrolls it being useful if you need to manage your T+1 delta as an MM (and ultra-HFT guys would be happy to quote that vs ES)
     
    Last edited: Jun 16, 2024
    FSU likes this.
  9. ajacobson

    ajacobson

    These are pit quoted now. It appears they're going to be better organized and disseminated
     
  10. FSU

    FSU

    I wonder what the pit traders think of this.
     
    #10     Jun 16, 2024