Cboe Europe derivatives exchange secures first trading banks ahead of September launch

Cboe Europe Amsterdam derivatives exchange is due to launch on 6 September and has received backing from the likes of Morgan Stanley, Goldman Sachs and ABN AMRO Clearing.

ABN Amro Clearing, Goldman Sachs and Morgan Stanley have become the first participant banks to back the new Cboe Amsterdam derivatives exchange.

The Cboe Europe Derivatives exchange is due to launch on 6 September, subject to regulatory approval, with its EuroCCP subsidiary to provide clearing services for the venue.

Cboe Europe confirmed that it has already secured the support of several participants, across banks, clearing firms, market-makers and proprietary trading firms, that it expects to contribute to the exchange’s liquidity provision and client order flow from go-live.

“Firms not currently active in European markets are excited by the prospect of a transparent, efficient, lit pan-European equity derivatives market, which will help to unlock its true potential and grow the market overall,” said Ade Cordell, president of Cboe NL.

ABN AMRO Clearing, Goldman Sachs and Morgan Stanley have become the first participant bank and clearing firms to back the exchange, with All Options, Da Vinci Derivatives, DRW, Flow Traders, Liquid Capital Markets and Susquehanna International Securities as participant market-makers and proprietary trading firms.

“Partnering with Cboe Europe Derivatives aligns with our support of innovative electronic marketplaces and offers another opportunity to provide additional market access and liquidity to our clients,” said Elizabeth Martin, global head of equities electronic trading at Goldman Sachs.

The new exchange is expected to fall under the Cboe NL umbrella, and will initially offer futures and options trading based on six Cboe European indicies, with plans to expand later based on demand.

“By increasing competition in the European equity derivatives market, our clients benefit from having more choice, while lower friction pricing models also promote greater liquidity,” said David Russell, global co-head of institutional equities at Morgan Stanley.

“Over the past 10 years, European exchange traded derivative volumes have lagged global markets, and we are supportive of this new initiative to bring further competition and innovation to this space.”