The launch of actively quoted complex orders on Cboe Global Markets

[ajacobson]

• 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]

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

 

[2rosy]

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

 

[ajacobson]

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

 

[Kevin Schmit]

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

More info in links at bottom of this page:

https://www.cboe.com/us/options/trading/quoted_spread_book/

 

[FSU]

More info in links at bottom of this page:

https://www.cboe.com/us/options/trading/quoted_spread_book/

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?

 

[taowave]

Good old Henry

 

[Slow Learning Elf]

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?

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)

 

[ajacobson]

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

 

[FSU]

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

I wonder what the pit traders think of this.