Cboe Europe, a pan-European exchange provider and holding company of Cboe Global Markets, Inc., recently announced the release of Directed Indication of Interest (DIOI) features to its block trading portal Cboe LIS, which is driven by BIDS technology. On July 12, 2021, the service was effectively initiated on the Cboe UK LIS portal. Subject to regulatory approval, Cboe intends to increase this new service to Cboe NL LIS subsequently this year.

Brokers can use this service to send Directed IOIs to a collective of their buy-side clients. Only businesses with a contra order in the Cboe LIS system and with whom the customer has a long-term relationship can see the DIOIs. DIOIs can be identified utilizing industry-standard qualifiers that indicate whether the liquidity comes from a customer or comes from the principal flow. The tracking of DIOI responses is a crucial part of the service, allowing Cboe LIS to offer brokers cumulative statistics to assist them in quantifying service usage.

Until the point of implementation, the identity of buy-side firms is hidden, enabling brokers to interact with clients directly for follow-on activity if necessary. This offering blends seamlessly into business processes and allows brokers to deliver IOIs to the buy-side desktop, which can be actioned with a click by utilizing the established Cboe LIS platform and BIDS Trader front-end technology. In the US equity market, a similar service is already accessible on the BIDS portal.

Morgan Stanley was the first sell-side customer for the Directed IOI service, and Cboe and BIDS are in discussions to add more brokers in the following months.

This advanced new service proves their commitment to working with both the buy-side and sell-side to overcome their business process issue and achieve execution results, said Natan Tiefenbrun, Head of European Equities at Cboe Europe. It provides a more stable and improved workflow for brokers to block IOIs to their customers through a regulated ecosystem. They believe it enhances both buy-side and sell-side high-touch and sales-trading teams’ capacity to obtain distinctive sources of block liquidity.

This venture is lined up with their dedication to working with exchanges to assist product innovation and enhance end investor implementation outputs, said Stephen Breen, Cash Head of Execution Services, EMEA, Morgan Stanley. It will help Morgan Stanley better distribute its distinctive liquidity to its customers while reducing information leakage.

Cboe LIS, operated by BIDS technology, has successfully identified itself as one of the renowned block trading locations in Europe. They are enthusiastic about starting a new process of product success and advancement, said Bryan Harkins, President of BIDS Trading. Cboe LIS will become even more critical with Directed IOI functionality.

About Cboe LIS

Cboe LIS, a joint venture between Cboe and BIDS, is an IOI and execution venue that allows market participants to trade vast blocks of European equities. Cboe LIS gives buy-side firms control over their IOIs until they are executed, allowing them to avoid information leakage while retaining critical interactions with their brokers. Cboe LIS is also distinctive in that it draws together the buy-side and sell-side block flows, allowing for more cross-trading opportunities.

For more information, visit https://www.cboe.com

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE), a leading supplier of market infrastructure and tradable product lines, offers market participants from the cutting-edge trading world, clearing, and investment solutions. The corporation is dedicated to functioning a trustworthy, inclusive world market by providing advanced product lines, technology, and data solutions that allow participants to chart a path to a secure financial future. Cboe offers trading products and solutions across North America, Europe, and the Asia Pacific in various asset classes, including equities, derivatives, and foreign exchange.

For more information, visit https://www.cboe.com

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