Chicago Board Options Exchange (CBOE) has announced a technology deal with Stockholm-based Cinnober Financial Technology whereby Cinnober will provide trading technology to CBOE for electronic trading of Flex options.
CBOE said the deal, announced at Futures Industry Association's annual conference in Boca Raton, Florida, marked the first Internet-based, fully automated electronic trading system to the US marketplace for the trading of equity and index Flex options, which are customizable options contracts. CBOE expected to launch the system, CBOEFlex Net, later this summer, pending regulatory approval.
CBOE chairman and CEO Bill Brodsky said the new electronic system would reduce costs, establish clearing transparency and counterparty anonymity for the product and point-and-click execution for Flex trades.
The CBOEFlex Net system was to be based...