Chicago Board Options Exchange is moving to match its competitors by launching C2, a new and separate electronic options exchange, next year.
CBOE, which disclosed the plan in a membership circular on Tuesday October 21, will spend $25m to build the exchange. It will eventually list all the CBOE contracts. The idea is to complement CBOE’s existing hybrid model, combining electronic and open outcry trading.
While a CBOE spokesperson said the pricing model for C2 had not yet been determined, most in the industry believe it will be a maker-taker structure, which pays liquidity providers through rebates and charges customers...