The Chicago Board Options Exchange announced Thursday that it has agreed to partner with Interactive Brokers Group, LaBranche & Co., Susquehanna International Group, and VDM Specialists to create the CBOE Stock Exchange.
The new securities marketplace will combine screen and floor-based trading to offer a hybrid market model that will offer access to New York Stock Exchange, NASDAQ Stock Market and American Stock Exchange-listed securities.
Pending approval from the Securities and Exchange Commission, CBSX is expected to go live in early 2007.
CBSX will operate under a hybrid trading system that is similar to the hybrid environment the CBOE currently uses for its options trading. The CBOE says hybrid combines the point-and-click functionality of screen-based trading with the versatility of floor trading to provide users with increased flexibility.
“We’re privileged to be partnering with some of the largest, most respected trading firms in the securities industry to launch this exciting new venture. Collectively, these firms represent significant portions of volume at our nation’s securities exchanges and the expertise and liquidity they will bring to the CBSX marketplace will be invaluable,” says William J. Brodsky, chairman and CEO of the Chicago Board Options Exchange.