Cboe sees record block trading activity in July

Cboe LIS continues to win over the buy-side with 158 asset managers now using the platform to trade large blocks under MiFID II.

Cboe Global Markets saw a new record month of activity in July on its European block trading platform as the industry continues to adjust to MiFID II.

Statistics from the exchange operator revealed that average daily notional value traded on Cboe LIS in July reached €273 million, an increase of more than 20% from the prior record set in May this year. July also saw total notional value traded peak at €6 billion on Cboe LIS, with the best day of activity seen on 18 July with €409 million notional traded.  

Further data from big xyt also showed that Cboe’s block trading platform accounted for 20% of total LIS trading activity on non-displayed venues in July.

Cboe LIS, which was launched prior to the implementation of MiFID II, provides an indication of interest (IOI), negotiation and execution platform that allows participants to negotiate large blocks in European equities without revealing intentions to the wider market.

“When we launched Cboe LIS, we brought to the market a much-needed solution for trading large blocks of stock in the European market that was designed to meet the unique needs of the buy-side,” said Mark Hemsley, president of Cboe Europe.

Cboe now has 158 buy-side firms using the block trading platform, as market participants look to take advantage of MiFID II’s LIS trading waivers for negotiation without pre-trade transparency.

Various block trading venues operated by the likes of the London Stock Exchange, ITG and Liquidnet have also seen volume surge significantly since MiFID II came into force.

“The rapid adoption of Cboe LIS and our strong pipeline of new customers is a testament that our approach to block trading struck the right chord with the market and both our buy-side and sell-side customers are finding value utilising the platform,” Hemsley concluded.