The new system, CFLEX, is an internet-based, fully automated electronic trading system in the US marketplace for the trading of FLEX options, which are customizable options contracts. The system also offers the benefits of a hybrid trading environment.
CFLEX will offer complete anonymity, with a combination of orders and request for quotes (RFQs), and guaranteed participation rights and order books; thereby enabling brokers, liquidity providers, and their customers to negotiate trades securely over the Internet. The CFLEX system will dramatically reduce the time required to execute a FLEX trade, and make the process far less complex.
William Brodsky, chairman and CEO of The Chicago Board Options Exchange (CBOE), said: CBOE created the concept of FLEX options in 1993, and with the launch of this new system, will take FLEX option trading to a whole new level by introducing the first Internet-based, fully-automated, electronic FLEX options trading system in the US. This revolutionary system will offer FLEX users a host of benefits, including significantly reducing costs, point-and-click execution, and virtual elimination of counterparty risk.
