LONDON, July 20, 2021 /PRNewswire/ -- Cboe Europe, a
pan-European exchange operator and subsidiary of Cboe Global
Markets, Inc. (Cboe: CBOE), today announced an enhancement to its
block trading platform, Cboe LIS, which is powered by BIDS
technology, with the addition of Directed Indication of Interest
(DIOI) functionality. The service was successfully launched on
12 July 2021 on the Cboe UK LIS
platform. Cboe plans to extend this new service to Cboe NL LIS
later this year, subject to regulatory approval.
This service is designed to allow brokers to target Directed
IOIs to a group of their buyside clients. The DIOIs are made
visible only to those firms with a contra order in the Cboe LIS
system and with whom the client has an established relationship.
DIOIs can be flagged using industry-standard qualifiers, which
specifies whether liquidity originates from a client or principal
flow. A key feature of the service is that DIOI responses are
tracked, which enables Cboe LIS to provide brokers with aggregate
statistics to help them measure usage of the service.
The identity of buyside firms remains anonymous until the point
of execution, allowing brokers to directly engage clients for
follow-on activity, if appropriate. By leveraging the existing Cboe
LIS platform, and BIDS Trader front-end technology, this service
fits easily into workflows and allows brokers to deliver IOIs to
the buyside desktop which can be actioned with a single click. A
similar service is already available on the BIDS platform in the US
equity market.
The Directed IOI service was launched with Morgan Stanley as its
first sellside client, and Cboe and BIDS are in talks to add
further brokers in the coming months.
Natan Tiefenbrun, Head of
European Equities, Cboe Europe, said: "This innovative new service
demonstrates our commitment to working with both the buyside and
sellside to solve their workflow challenges and improve execution
outcomes. It offers an enhanced and more secure workflow for the
delivery of block IOIs from brokers to their clients, through a
regulated-exchange environment. We believe it improves the ability
of both buyside traders and sellside high-touch and sales-trading
teams to access unique sources of block liquidity, automate their
workflows and control information leakage."
Stephen Breen, Cash Head of
Execution Services, EMEA, at Morgan Stanley, said: "This initiative
is aligned with our commitment to working with exchanges to support
product innovation and improve end investor execution outcomes. It
will help to enhance the distribution of Morgan Stanley's unique
liquidity to its clients whilst minimizing information
leakage."
Bryan Harkins, President of BIDS
Trading, said: "Cboe LIS, powered by BIDS technology, has quickly
established itself as one of the premier block trading destinations
in Europe and we are excited for
it to enter a new phase of product development and growth. With
Directed IOI functionality Cboe LIS will become an even more
integral part of our clients' toolkit for distributing and
accessing block-sized liquidity."
About Cboe LIS
Cboe LIS is an IOI and execution venue that was launched in 2016
in partnership with BIDS and allows market participants to trade
large blocks of European equities. Cboe LIS provides buy-side firms
with control over their IOIs up until execution, which helps to
protect against information leakage, while maintaining their
important relationships with their brokers. Additionally, Cboe LIS
is unique in that it brings together the block flow of both the
buy-side and sell-side, which allows for greater crossing
opportunities.
Cboe LIS has grown to become one of the largest block trading
platforms in Europe. During the
second quarter of 2021 it reported a record market share of
24.8%[i] and approximately €370 million in average daily
notional value traded.
For additional information, please contact the Cboe Europe sales
team at saleseurope@cboe.com.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The company is committed to operating a trusted,
inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities, derivatives
and FX, across North America,
Europe and Asia Pacific. To learn more, visit
www.cboe.com.
Media
Contacts
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Analyst
Contact
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Tim
Cave
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Angela
Tu
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Debbie
Koopman
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+44-20-7012-8950
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+1-646-856-8734
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+1-312-786-7136
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tcave@cboe.com
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atu@cboe.com
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koopman@cboe.com
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Cboe®, VIX® and Cboe Volatility Index® are registered
trademarks and Cboe Global MarketsSM is a service mark
of Cboe Exchange, Inc.
References to Cboe Europe and Cboe UK are references to
Cboe Europe Limited unless otherwise stated. References to Cboe NL
are references to Cboe Europe BV
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According to big xyt, an independent data and analytics
firm
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SOURCE Cboe Global Markets, Inc.