Nortia Research: CBOE Stock Exchange (CBSX) Moves Trading Systems to New York Metropolitan Area on July 1

Thursday, June 30, 2011

CBOE Stock Exchange (CBSX) Moves Trading Systems to New York Metropolitan Area on July 1

CHICAGO, June 30, 2011 /PRNewswire/ -- The CBOE Stock Exchange (CBSX) has announced two new strategic initiatives -- combining faster trading execution and a highly competitive single-price fee structure -- aimed at optimizing the trading experience at CBSX.

(Logo: http://photos.prnewswire.com/prnh/20100707/CBOELOGO-c)

On Friday, July 1, CBSX will move its trading operations to the East Coast from Chicago and begin trading from the Equinix NY4 Internet Business Exchange datacenter in Secaucus, NJ. CBSX's move to the NY4 facility will increase execution speed for the majority of CBSX's customers, which are located on the East Coast.

In addition, CBSX on June 1 instituted a simplified pricing model with identical fees for both liquidity "makers" and liquidity "takers" trading on CBSX. CBSX currently is the only U.S. exchange to use identical pricing for both makers and takers of market liquidity. The new CBSX pricing model is also one of the most economical fees structures currently available in the securities industry.

"We continue to evolve by focusing on the needs of our customers. We worked in close collaboration with major trading firms to design initiatives that had as a common theme greater execution speed and simple, fair and cost-effective pricing," CBSX CEO David Harris said. "We've now addressed our customers' priorities by reducing execution latency and making available a very attractive pricing model."

In the new CBSX pricing model, the fee for stocks trading above $1.00 is $0.0002 per share, and for stocks below $1.00, the fee is 0.02 percent of the dollar value of the transaction. In standard maker-taker market models, fees are generally different for those who make market liquidity and for those who take liquidity from the market.

For additional information regarding CBSX's relocation and connectivity, please see www.cbsx.com/NY4/.

Network Connectivity Overview

CBSX will utilize Equinix as its hosting facility. As a carrier neutral-data center operator, Equinix is on-net for over 36 carriers and fiber providers. This side array of network service providers offers redundant diverse connections throughout the NY metropolitan area and around the world. The central location of the Equinix facility also provides very low average latencies to the major market data centers in the NY metropolitan area.

Firms may choose to either connect directly to the CBSX routers at Equinix NY4 or through an Extranet. Direct connections are done with copper, multi-mode or single mode fiber Gigabit Ethernet cross connects from firm routers in the Equinix facilities to the CBSX routers. Actual bandwidth requirements vary based on the number of products being traded and market volatility. Firm routers must support the BGP routing protocol. Firms who do not choose to connect directly may connect via several service providers that offer shared Extranet connections to CBSX at the Equinix facility. Extranet providers Interactive Data, Radianz Ultra, RCN, Savvis COIN, SFTI, and TNS will be available.

http://www.cbsx.com/NY4/NetworkConnectivityOverview.aspx

Co-Location Facility - Equinix

Co-location space for network equipment and firms' applications servers will be available for CBSX utilizing Equinix's NY4 IBX® datacenter in Secaucus, NJ. Equinix has a one (1) cabinet minimum requirement. Five cabinets or above can be considered for private cages. Several power options are available.

Current Equinix customers should contact their Equinix Account Executive for information.

Firms new to Equinix and interested in co-locating hardware at the CBSX facility should contact Tim Rack from Equinix. Tim can be reached at 312.896.1341 or by emailing track@equinix.com

Firms wanting less than a full cabinet for co-location can contact the following firms that provide hosting at the Equinix facility: