CBOE Holdings has said that C2 Options Exchange, the company's new all-electronic exchange, will launch in late October 2010.
C2 will operate under a separate exchange license, with its own board of directors, rules, connectivity, systems architecture and access structure.
The new exchange will employ a ‘maker-taker’ fee schedule and a modified price/time matching algorithm for multiply-listed classes.
If approved, C2 will offer access through two different trading permit holder designations, both of which apply only to access to non-exclusive options classes.
The fees for those trading permits will be as follows: Market Maker Permit (MMP) – $5,000/month – gives the holder the ability to both stream quotes and submit orders into the C2 trade engine; and Electronic Access Permit (EAP) – $1,000/month – gives the holder the ability to submit orders only into the C2 trade engine.
CBOE Holdings chairman and CEO William Brodsky said that as a complementary market to CBOE, the company believes C2 will appeal to a wide variety of customers and has the potential to expand customer base.