Chicago Board Options Exchange (CBOE) has agreed with 3D Markets to offer a block options trading facility, a deal which is aimed at regaining lost options volumes from the OTC market.
The exclusive agreement, made on May 20, will allow CBOE to introduce institutionally oriented “benchmark-priced trades” through 3D’s Archangel trading software. Exchange and 3D Markets’ executives said they expect to launch the block trading service by the end of the year, pending regulatory approval and the technology integration of CBOE Direct - its electronic trading platform.
The new service addresses the growing flow of large institutional orders going to Wall Street...