CHICAGO, June 30, 2011 /PRNewswire/ -- The CBOE Stock Exchange (CBSX) has announced two new strategic initiatives -- combining faster trading execution and a highly competitive single-price fee structure -- aimed at optimizing the trading experience at CBSX.
On Friday, July 1, CBSX will move its trading operations to the East Coast from Chicago and begin trading from the Equinix NY4 Internet Business Exchange datacenter in Secaucus, NJ. CBSX's move to the NY4 facility will increase execution speed for the majority of CBSX's customers, which are located on the East Coast.
In addition, CBSX on June 1 instituted a simplified pricing model with identical fees for both liquidity "makers" and liquidity "takers" trading on CBSX. CBSX currently is the only U.S. exchange to use identical pricing for both makers and takers of market liquidity. The new CBSX pricing model is also one of the most economical fees structures currently available in the securities industry.
"We continue to evolve by focusing on the needs of our customers. We worked in close collaboration with major trading firms to design initiatives that had as a common theme greater execution speed and simple, fair and cost-effective pricing," CBSX CEO David Harris said. "We've now addressed our customers' priorities by reducing execution latency and making available a very attractive pricing model."
In the new CBSX pricing model, the fee for stocks trading above $1.00 is $0.0002 per share, and for stocks below $1.00, the fee is 0.02 percent of the dollar value of the transaction. In standard maker-taker market models, fees are generally different for those who make market liquidity and for those who take liquidity from the market.
For additional information regarding CBSX's relocation and connectivity, please see www.cbsx.com/NY4/.
The CBOE Stock Exchange, LLC, (CBSX) offers trading in more than 7,600 equities and exchange traded funds (ETFs) listed on U.S. securities markets. CBSX operates as a facility of Chicago Board Options Exchange (CBOE) and uses CBOE's technology platform. CBSX (www.cbsx.com) is owned by CBOE and a consortium of financial entities.
CBOE, a wholly-owned subsidiary of CBOE Holdings, Inc. (NASDAQ: CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as options on the S&P 500 Index (SPX) and on the CBOE Volatility Index (VIX).