Bats announces new complex order options functionality

Bats, a CBOE Holdings, Inc. (NASDAQ: CBOE) company announced that it is planning to launch new complex order functionality on its EDGX options exchange.

Subject to regulatory approval, the expanded functionality is planned to launch on October 23, 2017. It will include new order handling, risk management and trade-through protections. Specifically:

  • Complex order types will be made available to all customers;
  • New order entry protocols will give customers real-time control on which instruments can be traded;
  • Orders will be matched continuously, with complex orders allowed to trade against other complex orders or against ‘regular’ orders to ensure high fill rates;
  • Fully deterministic legging logic will apply, with no best effort or delays;
  • Three market data feeds will be provided, with a variety of uses designed to best fit customer profiles;
  • And a holistic set of risk protections, including those that work with, rather than against, the intrinsic value of complex orders, as well as new pegging logic.

The new functionality is expected to form the foundation for all complex orders handled by CBOE markets, which are currently migrating to proprietary Bats technology in a multi-year, multi-step process.

Chris Isaacson

Chris Isaacson, Executive Vice President and Chief Information Officer said:

It has been a longstanding goal of Bats to launch an electronic complex order book, and we are proud to be doing so as part of CBOE Holdings, who are rightly considered market leaders in U.S. options trading. Alongside the immediate benefits these enhancements will offer our long-standing customers, this functionality will be critical as we migrate markets to proprietary Bats technology. We believe our ability to launch new capabilities only eight months after the CBOE’s acquisition of Bats aptly demonstrates our focus on operating one of the world’s foremost derivatives trading businesses.

Added Kapil Rathi, Senior Vice President, Options Business Development:

As with all projects we undertake, the development of the new EDGX complex order capabilities was done in close collaboration with customers, which is why we’re confident that these expansions present the most efficient and adaptable offering available yet in the market. This customer-focused approach will continue to inform our development work across our derivatives businesses, and we look forward to communicating with the broader industry as we develop and define the next additions to the CBOE options marketplaces.

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Bats announces new complex order options functionality

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