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CBOE Holdings, Inc. (Nasdaq: CBOE) today announced that C2 Options Exchange, Incorporated(SM) (C2(SM)), the company's new all-electronic exchange, will open for trading on Friday, October 29, 2010. Details on C2's initial class and series listings were also announced.
C2 is the second securities options exchange under the CBOE Holdings, Inc. corporate umbrella. The new exchange will operate under a separate exchange license, with its own board of directors, rules, connectivity, systems architecture, and access structure. C2's market model will employ a "maker-taker" fee schedule and a modified price/time matching algorithm for non-proprietary classes.
C2 Options Class Rollout and Series Listing
Using a measured rollout over a period of several weeks, C2 plans to list all or substantially all of the most active option classes and series in the penny pilot.
On C2's first day of trading, Ford Motor Company (F) will be listed for trading. Thereafter, rollout of additional classes is expected on Tuesdays and Thursdays, except during expiration weeks. On the second rollout day, AT&T, Inc. (T), Merck & Co., Inc. (MRK), McDonalds Corporation (MCD), Texas Instruments Inc. (TXN), and Xerox Corporation (XRX) will be added. On the third rollout day, only the S&P 500 Depositary Receipts Exchange Traded Fund (SPY) will be added. On the fourth rollout day, both the PowerShares QQQ Trust (QQQQ) and iShares Russell 2000 Index Exchange Traded Fund (IWM) will be added. C2 will announce additional option classes as the rollout progresses and will publish the available series for each class and series additions at http://www.cboe.com/C2.
C2 will also be capable of listing CBOE's exclusive products, including S&P 500 Index (SPX) options, with plans for those products expected to be announced at a later date.
C2 Access Permits and Fees (subject to SEC approval)
C2 will initially have two types of access permits. The permit fees are only applicable for access to non-proprietary classes. C2 will begin assessing these fees on November 1, 2010. Currently, over 30 firms have connected or are in the process of connecting to C2.
- Market Maker Permit (MMP): Gives the holder the ability to stream quotes and submit Market Maker orders into the C2 trade engine. The cost of this permit will be $5,000/month.
- Electronic Access Permit (EAP): Gives the holder the ability to submit agency and proprietary orders into the C2 trade engine. The cost of this permit will be $1,000/month.
Additional Information
For additional information regarding C2 transaction fees, connectivity, accepted order types, and other details specific to clearing firms and Market Makers, please refer to Regulatory Circular C2-RG-10-01 at http://www.cboe.com/C2.
