[ T H O U G H T L E A D E R S H I P | C B O E ]
A new way forward To that end , Cboe has announced its intention to launch a new equity derivatives exchange , called Cboe Europe Derivatives ( CEDX ), on 6 September 2021 , subject to regulatory approvals , bringing competition and innovation to the region ’ s equity index futures and options markets .
CEDX will form part of Cboe NL , Cboe ’ s Amsterdam-based exchange , and aims to bring a modern , vibrant , lit pan- European venue to the region ’ s derivatives markets through the creation of a single marketplace for participants to express views on a broad spectrum of futures and options on European country and pan-European indices . These products will clear into Cboe ’ s pan-European clearing house , EuroCCP , creating a market structure that will generate efficiencies at both the trading and clearing level .
“ Our goal is to help grow Europe ’ s equity derivatives market overall by leveraging Cboe ’ s global derivatives expertise , European equities footprint , and world-class technology ,” said Ade Cordell , president of Cboe NL . “ We believe we can attract new participants to European markets , in particular US-based quantitative and volatility trading funds , creating a new , enlarged liquidity pool to help grow the equity and index options volumes in Europe .”
In order to foster growth of its platform , Cboe has brought on several firms as launch partners to help to provide the exchange with client-driven order flow . One such partner is Goldman Sachs , who continues to heavily invest in its own trading technology and the provision of liquidity to clients .
“ As global leaders in the listed and over the counter derivatives
markets , we see the benefits for our clients in supporting efforts that drive competition and innovation ,” said Elizabeth Martin , global head of equities electronic trading at Goldman Sachs . “ Partnering with Cboe Europe Derivatives , and their unique focus on solutions for all market participants , aligns with our efforts to drive growth and innovation in listed derivatives markets .”
CEDX will initially offer trading in futures and options based on six Cboe Europe Indices : the Cboe Eurozone 50 ; Cboe UK 100 ; Cboe Netherlands 25 ; Cboe Switzerland 20 ; Cboe Germany 30 ; and Cboe France 40 . These are proprietary Cboe indices all constructed using Cboe Europe market data , utilising the same methodology and ground rules as one another , meaning that , for example , the methodology for the Cboe Germany 30 index is the same
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