CBOE Futures Exchange (CFE) Communications Hub in Slough England Open for Business

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 tornatore@cboe.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 knorring@cboe.com 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 api@cboe.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

at Registration@cboe.com.

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

other than Great Britain, please contact Michael Mollet at mollet@cboe.com or 312-786-7428.

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 mollet@cboe.com.

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

and http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.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).

Additional Information

Please contact Jay Caauwe at caauwe@cboe.com or 312-786-8855 or Michael Mollet at

mollet@cboe.com or 312-786-7428 with any additional questions regarding the hub, access, or

connectivity and by clicking here  http://cfe.cboe.com/publish/CFEregcirc/CFERG13-004.pdf

Jay Caauwe

CFE

 

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Jay Caauwe

Director of Business Development for CBOE Futures Exchange (CFE). Focus on developing domestic and international business, leading to significant increases in exchange traded volume while working closely with buy/sell side. Assesses relevant business opportunities, developing a strategic marketing direction and plan of action as…