Iouri Saroukhanov

 “We are very excited to become a direct trading participant on CEDX and provide liquidity across the exchange’s range of pan-European equity derivatives contracts,” said Koen Langemeijer, IMC Europe market making lead.

“We are strongly aligned with CEDX’s ambitions to enhance and grow Europe’s derivatives markets and look forward to providing its participants with access to our exceptional levels of liquidity.”

CEDX came to market in 2021, officially launching with a futures and options trading offering. The exchange launched single stock options trading in November last year.

It now offers around 300 options on companies from 14 European countries.

Read more – Cboe Europe Derivatives expands into single stock options

“The support of a firm of IMC’s calibre demonstrates the broad appeal of CEDX, which is lowering barriers to entry for European derivatives through its pan-European model and promotion of deep and liquid on-screen markets,” said Iouri Saroukhanov, head of European derivatives at Cboe Europe.

“We look forward to IMC’s active participation across our range of equity derivatives and supporting us on our journey to create a larger and more efficient European derivatives market.”

Until IMC’s announcement, Interactive Brokers was the most recent participant to join the exchange, having joined earlier this month.

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Malin Galik

The move will offer Interactive Brokers’ clients another means to trade European equity derivatives alongside a wide range of global financial instruments, including stocks, options, futures, etc., from a single unified platform.

Access to CEDX coincides with Interactive Brokers’ existing European equity derivatives offering through Eurex and Euronext, providing clients with an added route to manage European investments.

“The introduction of Cboe Europe Derivatives underscores our commitment to providing clients with an extensive range of products to enhance their trading strategies at low cost,” said Milan Galik, chief executive of Interactive Brokers.

“As investors increasingly use derivatives to diversify and fine-tune market exposure, CEDX broadens the investment options available for our clients.”

Interactive Brokers’ clients will have access to more than 300 stock options, through CEDX, based on European cominies from 14 countries and European equity index derivatives.

Futures and options contracts based on Cboe Europe single country and pan-European indices are also available via benchmarks including Cboe Eurozone 50, Cboe Germany 40 and Cboe UK 100.

“We’re thrilled that clients of Interactive Brokers can now access Cboe Europe Derivatives’ suite of pan-European equity derivatives contracts,” said Iouri Saroukhanov, head of European derivatives at Cboe Europe.

“This is a significant milestone in CEDX’s journey to improve the ability of retail investors to gain access to and benefit from European derivatives, particularly options.”

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Milan Galik

Interactive Brokers has become a direct trading participant on CEDX and a direct clearing participant for equity derivatives on Cboe’s pan-European clearing house and CEDX’s clearing provider, Cboe Clear Europe.

“We are thrilled to welcome Interactive Brokers to CEDX, which represents a significant milestone in the exchange’s journey to improve the ability of retail investors to gain access to and benefit from European derivatives, particularly options,” said Iouri Saroukhanov, head of European derivatives at Cboe Europe.

“Interactive Brokers has been a strong collaborator to our successful US options markets for many years, and we look forward to strengthening this collaboration with them in Europe to help improve and grow derivatives markets in the region.”

Launched in September 2021, CEDX initially offered trading in futures and options based on key Cboe Europe single country and pan-European indices, with clearing provided by Cboe Clear Europe.

In November last year, CEDX expanded into equity options, with future expansion of these products in Q1 2024. The derivatives exchange now offers contracts on over 300 European companies.

“We are pleased to introduce access to CEDX and give our clients an additional way to trade European derivatives alongside our existing global stocks, options, futures, currencies, bonds, funds and more from a single unified platform,” said Milan Galik, chief executive at Interactive Brokers.  

“With the addition of CEDX’s extensive European equity options and index derivatives, our clients now enjoy enhanced choice and flexibility, enabling them to manage their European investments more effectively.”

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As part of the agreement, ION will provide direct access to CEDX via its cleared derivatives all-in-one automated trade workflow solution, XTP Execution, which offers Tier 1 banks and brokers integrated order management, connectivity and order execution.

The direct trading connectivity means users of the ION solution will gain access to CEDX’s futures and options markets for single country and pan-European equity indices – CEDX has also set out plans to expand into pan-European single stock options from 2023 subject to regulatory approval.

“Direct connectivity through the XTP Execution service will help to increase CEDX’s footprint across Europe ahead of its strategic expansion into single stock options,” said Iouri Saroukhanov, head of European derivatives, Cboe Europe.

“We are excited for ION’s clients to benefit from a transparent, efficient, and truly pan-European equity derivatives market, and accelerating towards our vision of creating the most complete equity derivatives ecosystem in Europe.”

ABN Amro Clearing, Goldman Sachs and Morgan Stanley became the first participant banks to back the new Cboe Amsterdam derivatives exchange in April 2021 ahead of its launch.

The European derivatives market later launched in September of that year, initially offering trading in futures and options based on key Cboe Europe single country and pan-European indices.

Cboe has since been expanding the remit of the marketplace, confirming plans to add single stock options on leading European companies to its remit in February, subject to regulatory approvals. The options are expected to be added in November.

“Trading connectivity to CEDX for XTP Execution customers extends market coverage of our cleared derivatives front-office suite and further consolidates ION Markets’ leading position in the industry,” said Francesco Margini, chief product officer for Cleared Derivatives, ION Markets.

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Cboe Europe Derivatives (CEDX), the pan-European equity derivatives exchange of Cboe Global Markets, is expanding its product suite to include single stock options on leading European companies.

The new products should be available for trading by November 2023 and will be cleared by Cboe Clear Europe, subject to the necessary regulatory approvals. 

CEDX is initially planning to offer equity options on companies from 10 European countries (Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain and Sweden). Options on stocks from additional European countries are expected to be introduced from February 2024, subject to regulatory approvals.  

Read More – Creating a larger, more liquid European equity derivatives market 

“The addition of single stock options is a key component of our ultimate vision for CEDX and we believe it will accelerate the momentum behind our aim of creating the most complete pan-European equity derivatives ecosystem,” said Iouri Saroukhanov, head of European derivatives at Cboe Europe. 

Read More – Bloomberg equity derivatives specialist joins Cboe Global Markets as head of European derivatives

“We have received strong interest from participants in bringing these products to market, from both the institutional and retail communities, who share Cboe’s desire to expand access to derivatives more widely. We believe the combination of CEDX’s equity derivatives marketplace and Cboe Europe’s highly successful stock exchange – which is the region’s largest by market share – creates a powerful and unique proposition for participants wishing to gain exposure to pan-European equities in a transparent and cost-effective way. 

“As one of the leading US equity options marketplaces, this move also demonstrates Cboe’s ambition to become the leading global securities and derivatives trading network, by replicating its successful products and market constructs in new regions.” 

Read More – Cboe Derivatives Europe brings US market practices to the Bloc 

Like CEDX’s existing index derivatives, the new products are expected to clear into Cboe Clear Europe, a wholly-owned subsidiary of Cboe and the region’s largest cash equity clearing house.  

CEDX first launched in September 2021, initially offering trading in futures and options based on key Cboe Europe single country and pan-European indices. 

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Cboe Europe Derivatives (CEDX)

Launched in September last year, Cboe Europe Derivatives is a relatively new player in the space but has made a significant impact in its short time of operation. Ahead of its launch, Cboe Europe Derivatives had already received backing from participant banks ABN Amro Clearing, Goldman Sachs and Morgan Stanley. In addition, All Options, Da Vinci Derivatives, DRW, Flow Traders, Liquid Capital Markets and Susquehanna International Securities also backed the new exchange as participant market-makers and proprietary trading firms prior to its launch.

Cboe Europe Derivatives is a pan-European marketplace which offers market participants a single access point to a wide ranging derivatives market. According to Cboe, the exchange is designed to create new opportunities for participants to express their views and manage their equity exposure, as well as to grow the derivatives market in Europe overall and improve its efficiency.

Since its launch in September last year, Cboe Europe Derivatives has seen its monthly volume of futures and options increase steadily from 66 to 1,421 as of September 2022. In March 2022, the exchange experienced a peak in monthly volume of futures and options which reached 2,464.

CME Group

 Derivatives giant CME Group has seen its quarterly international average daily volume (ADV) jump to 6.1 million contracts in Q3 2022, up 21% year-on-year. The jump in ADV was linked to current market conditions which have continued to create a heightened need for risk management worldwide. Elsewhere, EMEA ADV reached 4.2 million contracts, up 14% from Q3 2021.

This year alone, CME has launched a wide range of new futures as options as it continues to expand to improve upon its existing offering. In August, the exchange revealed plans to launch Euro-denominated Bitcoin and Ether futures, aimed at providing clients with improved tools to trade and hedge exposure to Bitcoin and Ether. Meanwhile, CME revealed plans to launch European overnight index futures, which are expected to help clients manage sovereign debt risk in Europe once available.

Eurex

Eurex operates one of the largest derivatives exchanges in Europe and one of the largest globally by open interest. In terms of contracts traded, Eurex has improved its position among the world’s top 15 derivatives exchanges from 13th place in 2021 to 9th place this year. The exchange boasts approximately 7,000 registered traders from around 350 members in 33 countries that are connected to its platform.


Earlier this year, Eurex released its June 2022 figures revealing strong growth in a number of sectors, with interest rate derivatives showing the strongest year-on-year growth. Interest rate derivatives saw an increase of 42% year-on-year from 57.9 million traded contracts to 82.0 million, while index derivatives grew by 28% from 77.9 million traded contracts to 99.3 million. Eurex’s total traded derivatives contracts grew by 26% in June, from 167.7 million to 210.9 million in comparison to the same period last year. However, total contracts traded in equity derivatives fell by 8% percent to 29.2 million.

Euronext

Euronext serves as the largest pan-European exchange and market infrastructure, connecting seven markets across the continent. The last year has proved fruitful for the exchange with surging trading volumes alongside a series of successful acquisitions.  

In August, Euronext reported a particularly ‘solid’ Q2 driven by the sustained dynamism of non-volume activities and of trading operations. The exchange reported a 14% increase in revenue and income in Q2 of this year, compared to the same period last year, which reached €374.7 million – driven by the growth of non-volume related business and trading activities.

Non-volume related revenue accounted for 59% of Euronext’s Q2 total revenue this year, while trading revenue grew to €129.2 million, a 15.6% increase compared to the same period last year – a result linked to robust performance across all asset classes in a volatile market environment. Growth was also driven by the recent Borsa Italiana acquisition, which also bumped up the exchange’s strong Q1 results.

Elsewhere, Euronext reported that net income, share of the parent company shareholders was up 37.2% to €118.9 million, an increase by €32.2 million compared to the same period last year.

ICE

Intercontinental Exchange (ICE), which describes itself as the home of the UK derivatives market, has FTSE derivatives and the MSCI derivatives as its two largest product suites – of which it boasts over 95% and 73% market share, respectively.

This year, ICE has established numerous partnerships with other firms to remain competitive and to continuously improve its existing offering. Most recently, in September, processing solutions provider Murex integrated with ICE Data Services, part of ICE, to improve access to ICE’s fixed income and derivatives data via the MX.3 platform. The incorporation of ICE’s data into MX.3 provides existing and potential clients with access to a wide range of daily and historical data such as cross-asset prices, volatilities and other analytics – which can be used to inform trading, risk management and profit and loss management.

Elsewhere, ICE started off the year with a partnership with cryptocurrency market data provider, Kaiko. The partnership resulted in a new offering which allows Kaiko’s cryptocurrency data feeds to be accessed by investors and enterprises connected to any of ICE’s data centres, including locations in the Americas, Europe and Asia-Pacific, or via the cloud using ICE Cloud Connect. The combination of ICE’s extensive network and Kaiko’s data services allows market participants to access high-quality cryptocurrency data feeds.

The post Leaders in Trading 2022: Meet the nominees for…. Outstanding Derivatives Exchange Group appeared first on The TRADE.

Colt will provide its clients connectivity to Cboe Europe Derivatives (CEDX) via its PrizmNet low-latency network, which aims to speed up time to market, reduce slippage and lost trades for users accessing the new exchange.

PrizmNet from Colt provides a single connection to an ecosystem of exchanges, venues and trading and regulatory solutions providers, including market data feeds. It also allows users to interconnect with cloud service providers such as Amazon, Google, Microsoft and IBM.

Matthew Reinholds, segment sales director for global capital markets and Asia enterprise at Colt, commented that the firm is one of the first connectivity partners to offer access to CEDX ahead of its launch.

“Colt has long been a leading connectivity provider for the capital markets community, and thousands of customers around the world trust our network. We continue to monitor the market and make infrastructure investments to ensure we connect to key liquidity hubs and deliver the best possible latencies and performance,” he added.  

Cboe’s new derivatives exchange is due to launch on 6 September after recently gaining approval from the Dutch regulator. CEDX will provide trading in European and pan-European equity index futures and options that will be cleared at EuroCCP, which Cboe acquired in July.

In April, ABN Amro, Goldman Sachs and Morgan Stanley were confirmed as the first participant banks for CEDX after Cboe said it had secured several banks, clearing firms, market makers and proprietary trading firms that will provide liquidity and client order flow to the market when it goes live.  

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The changes to the senior team aim to position the firm as it transitions into a multi-asset clearinghouse.

EuroCCP will incorporate equity derivatives into its existing cash equities and ETF businesses to support the launch of Cboe Europe Derivatives.

Under the changes, chief risk officer at EuroCCP since 2008, Arnoud Siegmann, has been appointed chief operating officer. Jonathan Tran, who joined EuroCCP in 2018 from LCH, will take over from Siegmann as chief risk officer having worked previously as deputy chief risk officer.

Elsewhere, Ed Hughes has been appointed chief technology officer at EuroCCP. He also joined EuroCCP from LCH in 2019 to manage the clearinghouse’s expansion into equity derivatives.

Cboe’s acquisition of EuroCCP completed in July and it confirmed plans to launch a European derivatives business to offer trading in equity futures and options based on the exchange group’s indices.

As the acquisition was finalised, Cboe stated EuroCCP will operate as an independent subsidiary, retain its name, and continue to be led by Cécile Nagel, who has been CEO of the clearinghouse since July 2018.

“Despite the huge volatility in financial markets over the last 12 months and, more recently, the impact of Brexit, we have consolidated our position as the leading pan-European equities clearing house,” Nagel commented on the management changes.

“We have also reinforced our operational resiliency with the implementation of a stronger liquidity management framework, as well as a new margin risk management system expected to be deployed later this month. These appointments recognise the significant contribution that Arnoud, Jonathan and Ed have each made to these achievements.”

Figures from EuroCCP revealed that the clearinghouse cleared 1.7 billion trades in 2020, marking a 31% increase on the year prior. It has also seen record volumes so far this year on Euronext markets through the preferred clearing model early this year.

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