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Cboe Global (CBOE) Subsidiary to Unveil Algo Execution

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Cboe Global Markets, Inc.’s CBOE wholly-owned subsidiary, Cboe FX Markets, has partnered with leading electronic liquidity provider, XTX Markets to unveil a hosted algorithmic execution service.

Cboe FX provides the benefits of an independent, transparent market structure to institutional forex trading. Its expanding model provides better control of the trading process, enabling better trade execution. It limits transaction costs for the global customer base.

The service will be backed by Cboe FX’s electronic communication network (ECN) and is intended to provide the participants of Cboe FX access to the XTX Market’s Execution Algo in order to mitigate the performance deficiency.

The use of algorithms is expected to lead to transparency for Cboe FX’s participants as they access the liquidity to better the execution quality and boost automation within FX operations.

The introduction of algorithmic execution service will provide Cboe FX with a wide range of trading services to meet the diverse needs of the FX trading community. Cboe FX’s suite of trading services includes a firm order book (Cboe FX Central), a sweepable order book with curated firm and non-firm liquidity (ECN), and full amount trading, which provides participants with a solution for larger order risk transference with low market impact.

The algorithmic execution service is expected to meet rising demand for algo trading in the FX markets. Such higher trading volumes boost transaction revenues and thus benefit the Global FX segment of Cboe Global. In the first half of 2021, Cboe FX witnessed strong growth with reported average daily volume) of $34.5 billion and earned a strong market share of 16.4%.

Cboe offers trading across a diverse range of products in multiple asset classes and geographies, which include global foreign exchange among other products. On the Cboe FX platform, the institutional FX services take place under the Global FX segment of CBOE Global Markets.

As far as XTX Markets is concerned, this recent collaboration will improve the distribution of FX Algo product and limit the FX community’s trading cost.

Shares of Zacks Rank #3 (Hold) security exchange have gained 38.9% in the past year, outperforming the industry’s rise of 27.1%. Solid fundamentals like a diversified product portfolio and strong liquidity position should help the stock to trend higher.

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Zacks Investment Research


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Stocks to Consider

Investors interested in the finance sector can look at OTC Markets Group Inc. OTCM, Nasdaq, Inc. NDAQ and Equifax, Inc. EFX, each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings of OTC Markets surpassed estimates in each of the last four quarters, with the average earnings beat being 35.73%.

Nasdaq surpassed estimates in each of the last four quarters, with the average earnings beat being 9.21%.

Earnings of Equifax surpassed estimates in each of the last four quarters, with the average earnings beat being 17.71%.


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