ION and Cboe Europe Derivatives (CEDX) are set to expand Tier 1 banks and brokers’ access to pan-European derivatives markets through a new collaboration.
As part of the agreement, ION will provide direct access to CEDX via its cleared derivatives all-in-one automated trade workflow solution, XTP Execution, which offers Tier 1 banks and brokers integrated order management, connectivity and order execution.
The direct trading connectivity means users of the ION solution will gain access to CEDX’s futures and options markets for single country and pan-European equity indices – CEDX has also set out plans to expand into pan-European single stock options from 2023 subject to regulatory approval.
“Direct connectivity through the XTP Execution service will help to increase CEDX’s footprint across Europe ahead of its strategic expansion into single stock options,” said Iouri Saroukhanov, head of European derivatives, Cboe Europe.
“We are excited for ION’s clients to benefit from a transparent, efficient, and truly pan-European equity derivatives market, and accelerating towards our vision of creating the most complete equity derivatives ecosystem in Europe.”
ABN Amro Clearing, Goldman Sachs and Morgan Stanley became the first participant banks to back the new Cboe Amsterdam derivatives exchange in April 2021 ahead of its launch.
The European derivatives market later launched in September of that year, initially offering trading in futures and options based on key Cboe Europe single country and pan-European indices.
Cboe has since been expanding the remit of the marketplace, confirming plans to add single stock options on leading European companies to its remit in February, subject to regulatory approvals. The options are expected to be added in November.
“Trading connectivity to CEDX for XTP Execution customers extends market coverage of our cleared derivatives front-office suite and further consolidates ION Markets’ leading position in the industry,” said Francesco Margini, chief product officer for Cleared Derivatives, ION Markets.