What are the philosophy and the competitive advantage of the CBOE Stock Exchange?
The CBOE Stock Exchange, or CBSX, is part of the U.S. largest options exchange, the Chicago Board Options Exchange, or CBOE. While we are a separate company that focuses on stock trading, the CBOE is the largest owner, and that relationship has been very important for our development. Our philosophy is based on reducing trading costs and increasing trading efficiencies for the multi-asset class trader, most specifically, the options trader. We spend our time identifying and seeking solutions for the problems of the option trader, such as the costs and the efficiency of trading. As an exchange, we offer solutions for these problems. Option traders need to hedge their positions, and they often use stocks for hedging. In addition, they do a lot of option transactions that have a stock-like component. The CBSX represents the stock part of the option trading. Its creation as part of the CBOE group has resulted in a big change for the CBOE member. Previously, many of the CBOE traders needed
