Cboe Global Markets, Inc. (Nasdaq: CBOE) has just informed that SSW, an innovative pan-European liquidity provider in a very broad universe of instruments, has started its Systematic Internaliser (SI) business by utilising Cboe Europe’s SI technology services to efficiently connect to and service their clients.
Cboe offers a comprehensive suite of SI services for participants acting as or interacting with SIs under the MiFID II SI regime. This multi-faceted offering brings together real-time public quoting, network access, bilateral trade matching and real-time trade reporting. This suite of services brings standardisation and transparency to the SI regime.
Mark Hemsley, President of Cboe Europe, said:
SSW has been an early supporter of our SI technology business and we are pleased they have chosen us as their sole technology provider for their SI activities. Our SI technology solutions enable SIs like SSW to leverage Cboe technology to quickly on-board and service clients via a hosted, bilateral matching technology platform.
Peter Vorrath, Head of Business Development for SSW, added:
Cboe provides a complete solution for our SI technology needs – from connectivity and bilateral trade matching services to trade reporting. Utilising Cboe’s SI technology services has enabled our clients to get easy access to our SI service and allows us to scale our SI business in an efficient and standardised process while focusing on what is most important – providing customized liquidity in thousands of instruments ranging from liquid blue-chips to illiquid micro-caps, to our clients.
Cboe’s SI connectivity and bilateral facilitation service aims to bring standardisation to the market. Cboe’s SI connectivity solution includes standardised market data and order entry interfaces, which reduces connectivity costs and provides interaction via a technology provider considered to be trusted and reliable. This enables SIs, such as SSW, to leverage Cboe technology to quickly on-board and service clients to a hosted, bilateral matching environment, which is separate from the Cboe Recognised Investment Exchange (RIE) or Cboe Approved Publication Arrangement (APA). Cboe facilitates the bilateral interaction between SIs and their counterparties/customers to enable their SI-operated matching activity. This allows SIs to communicate quotes to clients and then facilitate matching processes.
As it relates to trade reporting, all trade reports associated with the SI regime are required to be reported in accordance with MiFID II reporting rules and flagged as SI reports. The SI can opt to utilise automatic submission of trade reports to the Cboe APA, which is seamlessly interfaced to the bilateral matching.