Jay Caauwe from the CBOE’s CFE sat down with us and reviewed the launch of the CFE’s new high speed
communications hub in Slough (outside London) England. Below are some of the items Jay reviewed with us.
What is the hub?
The hub which went live February 1st is a cross connection from Equinix LD4 in Slough, England to the
CBOE Command Center at Equinix NY4 in Secaucus, New Jersey. The cross connection consists of telephone
switch equipment and communication lines. The connection provides direct access to CFE’s trading system.
The connection also provides direct access to CFE market data and to index data made available by
Market Data Express, LLC (MDI index data). At a later date, direct access will also be made available to
the Chicago Board Options Exchange, Incorporated (CBOE) trading system at Equinix NY4 in
Secaucus, New Jersey and to CBOE market data.
Who can connect to the hub?
Only CFE Trading Privilege Holders (TPHs) may connect to the hub for the purpose of directly
accessing CFE’s trading system. Any firm or individual may connect to the hub to receive market data.
A firm or individual must subscribe to the applicable data feed in order to receive market data through
the hub. See the description below for permissible locations from which direct connections to the hub
to receive market data may emanate.
What products can be traded via the hub?
Any and all products offered on CFE can be traded. These products include CFE’s suite of volatility products,
including VIX volatility index futures, S&P 500 Variance futures, CBOE Gold ETF Volatility Index security futures,
CBOE Crude Oil ETF Volatility Index security futures, CBOE Emerging Markets ETF Volatility Index security futures,
and CBOE Brazil ETF Volatility Index security futures. Additional information about CFE products is available at http://cfe.cboe.com/Products/.
What market data can be received via the hub?
CFE market data includes CFE time and sales, and quotes. Information about CFE market data is available
at https://www.cboe.org/MDX/CFE/CFEMain.aspx. For more information regarding access to CFE market
data through the hub, please contact John Tornatore at email@example.com or 312-786-7715.
MDI index data includes index values for over 100 indexes, including the CBOE Volatility Index
(the VIX index) (which underlies VIX futures traded on CFE and VIX options traded on CBOE), the S&P
500 (which underlies SPX options traded on CBOE), and the S&P 100 (which underlies OEX options
traded on CBOE). Information about MDI index data is available at
https://www.cboe.org/MDX/MDI/MDIMain.aspx. For more information regarding access to MDI index
market data through the hub, please contact Tom Knorring at firstname.lastname@example.org or 312-786-7363.
What is the process for connecting to the hub?
Connectivity to the hub requires a telecommunication line to Equinix LD4 in Slough, England. For Equinix connectivity information, please refer to http://www.equinix.com/en_US/solutions/byservices/ network-connectivity/equinix-connect/. For CFE API connectivity, please contact the CFE API Group at email@example.com or 312-786-7300.
What is the process for becoming a TPH?
A firm or individual that desires to connect to the hub for the purpose of directly accessing CFE’s
trading system is required to become a TPH and to obtain a TPH permit from CFE. For additional
information regarding the CFE TPH application process, please contact Registration Services
Where can direct connections to the hub emanate from?
CFE Rule 305A provides that each TPH is responsible for ensuring that thelocation of any CBOE Workstation
is in the United States or a foreign jurisdiction expressly approved byCFE (consistent with prior CFE Rule 513(c)). Pursuant to CFE Rules 115 and 116, a CBOE Workstation isany computer connected directly to the CBOE System,
and the CBOE System includes CFE’s trading systemas well as the hub. Therefore, any TPH computer that is
not in the United States which is connected tothe hub for trading purposes must be located in a foreign
jurisdiction approved by CFE. CFE has approvedGreat Britain as a foreign jurisdiction in which CBOE
Workstations may be located. If a TPH desires to locatea CBOE Workstation in a non-U.S. jurisdiction
Foreign TPHs should refer to Rule 305A for further information.
A firm or individual not located in the United States which is connected to the hub to receive
market data must be located in a foreign jurisdiction approved by CFE or CBOE. CFE and CBOE have
approved France, Germany, Great Britain, the Netherlands, and Switzerland as foreign jurisdictions in
which a firm or individual may be located to connect to the hub to receive market data. If a firm or
individual is located in a non-U.S. jurisdiction other than these countries and wishes to connect to the
hub to receive market data, please contact Michael Mollet at firstname.lastname@example.org.
What fees are associated with connectivity to the hub?
A communications line to Equinix LD4 is required to establish connectivity to the hub. Equinix
LD4 assesses an installation fee along with a monthly fiber fee for the cross connection to the cage at
Equinix LD4 for the cage. Neither CFE nor CBOE assess fees for connecting to the hub. However,
standard network access, login, and market data fees apply. For more information, please refer to the
CFE and CBOE fee schedules (as applicable) at http://www.cboe.com/publish/cfefeeschedule/cfefeeschedule.pdf
During what hours is the hub operational?
Effective February 1, 2013, the hub is operational from 12:00 – 22:00 GMT (6:00 a.m. – 4:00
p.m. CST). CFE trading hours are 13:00 – 21:15 GMT (7:00 a.m. – 3:15 p.m. CST).
connectivity and by clicking here http://cfe.cboe.com/publish/CFEregcirc/CFERG13-004.pdf