Market Regulation: Flash Trading

Market Regulation: Flash Trading

• "News & Views"
  • VIDEO: "Flash Trading: The Simple Economics with CBOE Executive Vice Chairman Edward T. Tilly" (January 5, 2010)
• Background on Flash Trading
  • CBOE's flash process was designed to get the best price available in the market for marketable orders... more
• Status and Recent Developments
  • Status: The SEC on July 2 reopened the comment period regarding "step-up" orders in options.

    CBOE's position: Among comments offered, CBOE states that a flash/step-up capability enhances competition between and among options exchanges, enables different models of options exchange structure, promotes best execution for customers, and is consistent with aggressive quote competition.

  • SEC has banned flash in the equities space; may also need to determine its scope and whether or not an exemption should apply to options... more
• CBOE Views on Flash Trading
  • The options marketplace is different than the equities market. All stock exchanges employ "maker-taker" fee models, which charge all customers "taker" fees. Some options exchanges are maker-taker, while others (like CBOE) have "traditional" fee structures... more
• Press Releases
• Speeches/Testimony
• Comment Letters
  • CBOE Comment Letter #3 to SEC on Flash Trading
    RE: Supplemental CBOE Comments on Flash Trading
    (December 3, 2010)
  • CBOE Comment Letter #2 to SEC on Flash Trading
    RE: Additional Comments on SEC Proposal to Eliminate the Use of Flash Orders by Equity
    and Options Exchanges
    (August 9, 2010)
  • CBOE Comment Letter to SEC on Flash Trading
    RE: SEC Proposal to Eliminate Exception for the Use of Flash Orders
    (November 18, 2009)
• Exchange Communications
• Op-Eds/Articles