The ordering process of CBOE is different from other exchanges. 85% of the consignments enter the CBOE ORS system through brokers, and another 15% enter by telephone. After receiving the entrustment data, ORS will decide how to handle the entrustment according to different conditions and parameters, which are divided into the following seven types:
RAES
(Retail Automatic Execution System): Specialized in handling small entrustment. These commissions are made at the current market price through the electronic trading system, and it takes only a few seconds from the transaction to the payment.
fast breeder reactor
(On-site broker routing): The commissions that meet specific conditions will be sent directly to their trading halls, and the on-site brokers will match them through public bidding. Transaction data will be returned to the broker through ORS.
Member company counter
(booth of member firms): conditional entrustment or other entrustment requiring special treatment shall be sent to the counter of member dealers on the floor manually and handed over to the dealers on the floor for matchmaking by open bidding.
ebook / electronic book / e-book
(e-book): Entrustments that are too far from the current market quotation will be sent first and stored in the e-book system. EBook only contains the limit order and the entrustment entered before the opening, which has the priority over the entrustment with the same conditions in the trading hall. At present, the transaction volume of electronic books accounts for about 34% of the total transaction volume.
Bart
(booth automatic wiring): BART can be regarded as an electronic wheel, which provides better ordering function. BART allows floor brokers to set relevant parameters, screen out qualified commissions on ORS and send them to the trading counter of floor brokers. The floor broker can see the qualified commission set on Bart's screen at the counter.
Manualmuscletest
(Handheld Terminal of Market Maker): It is the personal computer system of Market Maker. It can be roughly divided into two types, one is developed by CBOE, and the other is developed by non-CBOE, abbreviated as NCCs (non-CBOE computer). At present, MMT handles about 93% of market maker's trading volume. MMT mainly provides three main functional interfaces: RAES (retail automatic execution interface): when a market maker is designated as a market maker of a product, RAES will automatically transfer the entrustment to the MMT of the market maker in real time; Stock order routing system: market makers can buy and sell options through MMT in the trading pool of CBOE and handheld screen; Electronic Trade Notification (ETN): This is a newly developed function. On-site brokers or order book officials can input their trading information into ETN, and the system will automatically send it to MMT of market makers. After seeing the trading information, market makers can easily click on the screen to accept or reject the trading, which will speed up the trading and reduce the occurrence of errors.
CBOE hybrid trading system
(CBOE direct HyTS): a multi-functional trading system jointly launched by CBOE and Baelz Berg Technology Company. CBOE was officially launched on June 12, 2003. Its functional characteristics are: to provide the maximum speed and efficiency of market transaction information transmission;
Single and multiple quotes: provide single real-time continuous quotes for market makers; For customers, more in-depth quotation information can also be obtained;
Simple operation: providing multiple functions and automatic operation mode;
Open electronic entrustment: provide open entrustment, and the entrustment of non-market makers can also automatically join the electronic entrustment to participate in automatic matchmaking. In addition, the open environment of HyTS allows many independent software vendors to freely develop program interfaces to provide users and members with access to HYTS;
Unique matchmaking system: CBOE divides the commissions involved in bidding into two categories: orders and quotations. Due to the different nature, the matching logic of its trading system is also different. HyTS has set up many special designs for quotation, such as automatic quotation, risk control mechanism, class quotation cancellation and so on. However, the quotation ranking in the power of attorney is not as good as that in the general entrustment, and the quotations of different market makers will not trade with each other;
The improvement of price discovery function: different from the previous manual bidding method, it can provide more flexible price space for double entry or other entrustment, which has far-reaching value and significance. In addition, HyTS' publicly disclosed power of attorney only covers the price and quantity of the best trading file. The more detailed information of the power of attorney is only provided to the obligee (such as the designated market maker DPM);
Determination of opening price: HyTS replaced CBOE's original opening price system (ROS). However, similar to the original operation mode, HyTS also uses rotation to determine the opening price. In the round-robin bidding stage (at least15s), HyTS will match fake hands every three seconds, and disclose the expected opening price and quantity to the public, so that market makers can modify the quotation accordingly and make an appropriate opening price.
After the CBOE hybrid trading system goes online, the original, building, e-book, trigger, automatic quotation/seller quotation, ROS, VTATs and manual quotation will be replaced by the new system. Since July 2 1 2004, CBOE has launched Hybrid2.0 (H2O for short), whose main function is e-DPMs, which provides a more convenient quotation environment for the market to designate first-class market makers. In addition, CBOE also provides terminal functions (called HyTS terminals) for trading members. The system allows trading members to participate in CBOE market trading by clicking on the window, and even trade products of other options, stocks or futures exchanges.