#CBOE to move electronic #trading platform to #NewJersey

Chicago Board Options Exchange (CBOE) plans to move its flagship options trading platform from Chicago to Secaucus, New Jersey in the 4th quarter this year. As the largest and oldest venue for trading options, CBOE will be the last major stock or options exchange to locate in a data center in the New York metropolitan area.

This might be the latest step in CBOE’s efforts to attract high-frequency traders, who by their very nature have to be very cognizant of latency. So the 12 or 13 milliseconds it takes to route an order from New York to Chicago isn’t fast enough for these rapid-fire traders and could potentially cause them to lose millions.

The move later this year will also include CBOE’s futures exchange and its OneChicago single stock futures exchange. And by then, all major stocks and options exchanges, as well as major trading firms based in New York City or Chicago, will all site their matching/execution engines in the New York area. So there come all the co-location services to cut down latency to the bare minimum.

CBOE is one of the sponsors at the Trading Show Chicago 2012 event. One of the conference streams, Exchange Technology World Chicago will focuses on discussing technology challenges global exchanges are facing nowadays and in the near future.