Not sure I get this one – why is CBOE filing to charge clients for a trading front end in an environment where exchanges are willing to pay for order flow? Not to mention how hyper competitive the EMS market has become. Maybe some unique functionality that will not be made available through third party platforms? Nethertheless, interesting development.
“It could become a necessity for options traders if certain order types or functionality could only be accessed through the CBOE’s new platform,” said Kevin McPartland, senior analyst at Tabb Group LLC in New York. “But since they’re probably getting the majority of their order flow from third- party platforms, this could jeopardize some of that, especially in an options landscape that’s so competitive right now.”