US-based Chicago Board Options Exchange (CBOE) plans to open an all-electronic trading venue, C2 Options Exchange, in late October 2010.
The new platform will make use of a maker-taker fee schedule and a modified price-time matching algorithm for multiply-listed options classes. Products will be rolled out in a series of launches, with the first phase expected to include 25-50 multiply-listed classes over a period of several weeks, with further rollouts planned for early 2011.
“The launch of C2 marks a significant milestone in the continued evolution of our company,” said William Brodsky, chairman and CEO, CBOE Holdings. “As a complementary market to CBOE, we believe C2 will appeal to a wide variety of customers. Its flexible structure is designed to provide us with greater strategic optionality and is intended to offer substantial opportunities in a highly competitive and rapidly changing options environment.”
Run under its own exchange licence and separate board of directors, C2 is expected by CBOE to gather up virtually all of the industry's multiply-listed penny pilot option classes. The venue is also expected to list CBOE's exclusive products, including S&P500 Index options, with plans for those products to be announced following the launch.