CBOE Stock Exchange

In 2007, the Chicago Board Option Exchange and four other partners (Interactive Brokers Group, LLC, LaBrache and Company Incorporated, Susquehanna International Group LLP, and VDM Specialists LLC, basically the most dominant NYSE specialists out there) created the CBOE Stock Exchange, otherwise known as the CBSX. The market was one that was fully electronic and used complicated algorithms and strict prices that are up-to-date in time and rebates in order to get the results that it was given. In fact, within the first year of trading, the company posted over three billion shares that were trades on the exchange, which is something to say about an exchange that just started. The rebates that they are offering are something that are very attractive to the world of investors, and may be a reason for why they are so successful. For example, they are going to offer a rebate of fourteen cents per one hundred shares that are purchased, while charging the maker fees of eighteen cents per one hundred shares.

Over the years, there has been many people take an interest in the CBOE Stock Exchange. In fact, in 2008 in January, the Lime Brokerage acquired some minor stakes in CBSX. The reason for the interest was the fact that the trading model that CBSX uses is one that is designed to help the stock and orders that go through. The model increases the efficiency that is happening between trading the stock and finding out what the ordering options are. All the while of doing this, the cost for participants who are executing these orders are reduced, hence you can see why so many people are interested in this model. The speed of which they are allowing people to perform these tasks is why they are able to reduce the cost of the stocks, while also increasing the profit that they are receiving. People can find what they want and get it at the price that they see rather than waiting an hour or two for the order to go through.

When the company was first created, they were running with a nine member board, which is rather small compared to the other larger exchanges that are out there. In addition, they started out with an initial roster of twelve stocks, and plans that would list around 2,800 active stocks in the future. These stocks that were included are those that are actively traded on other major exchanges such as the American Stock Exchange and the New York Stock Exchanges. They were listing securities, exchange traded funds and other types of securities that are of interest to people. In 2010, the company offers around 7,200 stocks on the exchange, a huge improvement from what they started out with, needless to say. They are open everyday from eight in the morning to three in the afternoon. They are definitely one exchange that has opened up the financial world to the possibilities that are out there to find with trading stocks and other types of securities.