Cboe Europe Derivatives, IPC Enhance Access to European Equity Derivatives

Europe’s equity derivatives market has historically been dominated by national exchanges each of which have primarily focused on their domestic market, requiring participants to connect to multiple exchanges and clearing houses to achieve pan-European coverage. According to a story in MarketsMedia News. Cboe Europe Derivatives (CEDX), which launched in 2021, has taken a different approach with the aim of lowering the barriers to entry for firms wishing to trade European derivatives and reverse a decade or so of stagnant volumes in European products compared to those in other developed markets. Through one exchange and clearing house, CEDX offers a single access point to pan-European products, helping to reduce operating costs and improve capital margin efficiencies. Furthermore, it is promoting the adoption of more screen-based liquidity to attract new participants, particularly systematic firms, who have been deterred by the predominance of OTC style/off-screen trading in European options. CEDX launched with a range of futures and options on Cboe Europe single country and pan-European equity indices. It expanded its product universe in November 2023 to include pan-European single stock options with the support of leading participants including ABN AMRO Clearing, All Options, Barak Market Making B.V., Goldman Sachs, Morgan Stanley and Susquehanna International Securities. In addition, Interactive Brokers has also committed to connecting to CEDX to provide its clients with access to the suite of pan-European equity derivatives offered by the exchange, including single stock products.