FAQ

FCA and AFM Regulated Cboe Europe Venues

How will the Cboe Europe environments change?

The BXE and CXE environments will constitute the UK venue regulated by the FCA offering trading of UK, Swiss and EEA symbols.

A new DXE environment will form the EU venue (NL venue). This will be regulated by the AFM and offer trading of EEA symbols only — it will not offer trading of UK and Swiss symbols. Apart from Cboe LIS, the DXE environment will support all business functionality currently offered in BXE and CXE; a lit book, a dark book, periodic auctions and self-listed symbols which include opening and closing auctions.

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Order Entry, ODROP and FIXROP ports

What will happen to the recently created order entry, ODROP and FIXDROP ports in BXE and CXE that were destined to become part of the NL venue?

As a result of the April 2019 postponement of the UK’s exit from the EU, these ports will be reclassified/remain as UK venue ports and will continue to be usable on the UK venue. To aid clean up and rationalisation of ports Participants will be notified of any existing Brexit ports that have not been used for three months prior to 1st July and will be able to request their deletion. Any ports still in place from 1st September will be billed in the September billing run. Participants can view their ports in the ‘Logical Ports’ section of the Cboe Customer Web Portal.

How do I obtain NL venue order entry, ODROP and FIXDROP ports in DXE?

Participants will be able to request NL venue order entry, ODROP and FIXDROP ports from Monday 8th July 2019 in Certification (UAT) and Monday 5th August 2019 in Production via a newly developed Port Request tool in the Participant Portal. New IP addresses and port numbers will be used for these ports. Please refer to the UAT and Production Environment Access section for further details. Participants shall be able to specify which ports in BXE/CXE they want to be cloned to DXE.

How can I tell which symbols the NL venue will trade?

A “DXE” environment system file will be provided that uses the same structure as the existing symbol file.

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Multicast and TCP PITCH

What will happen to the legacy multicast PITCH feed in BXE and CXE?

The legacy multicast PITCH feeds will still be sunset on Friday 27th September 2019 as previously notified so Participants still need to complete their migration to the new multicast PITCH feed.

What will happen to the new multicast PITCH feed in BXE and CXE?

The new multicast PITCH feed infrastructure made available on Friday 15th February 2019 will be reclassified/remain as exclusively for dissemination of data from the UK venue. This will become the only means of receiving multicast PITCH data for the UK venue from Friday 27th September 2019, so all Participants must have migrated by then.

What will happen to the EU and UK GRP ports and duplicate spin ports in BXE and CXE?

Spin ports will be reclassified as UK venue ports so will only provide data from the UK venue. There are no changes to the IP or TCP port details.

With immediate effect GRP ports previously classified with a “UK” jurisdiction on the new multicast PITCH feed infrastructure can be used for making gap requests to any matching unit. From Monday 27th January 2020 “EU” jurisdiction GRP ports will no longer be usable and will therefore be deprecated.

How will market data be provided for DXE?

A new instance of multicast and TCP PITCH feeds will be provided for DXE. The environment will have twelve matching units consisting of the same symbol and market layout as BXE and CXE. In DXE units 1, 2, 3 and 11 will only generate heartbeat messages as there will be no live symbols on these units at launch. The messaging protocol will be the same as for the BXE and CXE environments.

How do I obtain new market data ports for DXE?

The new DXE multicast PITCH feed details are specified in a revised Multicast PITCH specification and Connectivity Manual in order for Participants to start making the necessary configuration changes. Participants will be able to order NL venue GRP and SPIN ports from Monday 8th July 2019 in UAT and Monday 5th August 2019 in production via a newly developed Port Request tool in the Participant Portal. Please refer to the UAT and Production Environment Access section for further details.

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Venue Clearing authority, clearing methods and trusting relations

Does my existing Cboe EU venue clearing authority cover trading on DXE?

Yes. Clearing authorities received from the CCPs in preparation for the launch on Cboe EU in April will continue to be valid (unless revoked) for the launch of DXE. The DXE UAT environment will be seeded as a “one off” operation with any existing EU venue clearing methods currently set up in BXE/CXE.

What will happen with all the trusting relations that have been approved in BXE and CXE?

DXE will be be seeded as a “one off” operation with all trusting relations that are fully approved or pending Participant Services approval in BXE/CXE by Monday 8th July 2019 in UAT and Monday 5th August 2019 in production.

After the initial seeding the approval of trusting relations for the UK and NL venue will be independent from each other. It shall be the responsibility of Participants to reject any approved trusting relationships created in DXE as part of the seeding process that they no longer want.

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Participant (Firm) Identifiers and sub-level firm codes (bank codes)

What Firm Identifiers and bank codes will be used for Cboe UK and NL venues?

A Participant that is a member of both Cboe UK and Cboe NL will be identified within the Cboe systems using the same four character Firm Identifier (Firm ID), per legal entity.

Cboe will remove the concept of jurisdiction from Participant bank codes. This will allow Participants to use the same bank code across the BXE, CXE and DXE environments, providing the appropriate clearing authority is in place.

Users and risk settings

What risk settings will be used in DXE?

Firm level risk attributes will be seeded in DXE with the values from BXE only by Monday 8th July 2019 in UAT and Monday 5th August 2019 in production. Port level risk attributes will be cloned for ports that a Participant selects to clone to DXE from BXE or CXE.

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Technical interface changes

What MICs will be supported by the two venues?

Venue Operator MIC Primary Sub-MIC Dark Book Sub-MIC Off-Book Sub-MIC Cboe LIS Sub-MIC Periodic Auction Sub-MIC Off-Exchange Sub-MIC
Cboe BXE UK BCXE BATE BATD BATF BATP
Cboe CXE UK BCXE CHIX CHID CHIO LISX
Cboe DXE NL CCXE CEUX CEUD CEUO LISZ BEUP
Regulated Market UK BCRM BART BARK BARO
NL CCRM BEUT BARU BEUO
Off-Exchange UK BCXE BOTC
NL CCXE CAPA
Table 1: MIC Codes

Will there be any FIX, BOE, ODROP or FIXDROP interface changes?

  • NL Venue MIC code support:
    Each environment (BXE, CXE and DXE) will only support the venue MIC codes for their respective venue in the LastMkt (FIX tag 30) field in the Execution Report, Trade Cancel/Correct, Trade Capture Report messages on FIX, BOE, ODROP & FIXDROP interfaces in BXE, CXE and Cboe LIS environments, as described in the primary, dark book, off-book, Cboe LIS and periodic auctions columns of Table 1 above.
  • TargetCompID value of CEUX for NL Venue FIX order entry, ODROP and FIXDROP ports:
    In the DXE environment Participants must supply the new value of CEUX in the TargetCompID (TIX tag 56) FIX tag in the header of all messages sent by Participants, in addition to the longon message. Messages will be rejected if a TargetCompID other than CEUX is provided on messages sent to the DXE environment. The value of CEUX will also be reflected on OrigCompID(9688) on DROP ports where this is configured to be included and the SenderCompID(49) in the header of all messages received from Cboe.
  • ContraBroker value of CEUX for NL Venue FIX and BOE order entry, ODROP and FIXDROP ports:
    In the DXE environment CEUX will be generated for all order book executions in the ContraBroker(375) FIX tag and corresponding BOE field of the same name on executions, trade capture confirms, trade capture declines.
  • Interaction with the Periodic Auction and Open/Closing Auction mechanisms:
    In DXE if a Participant attempts to use a single order to address the periodic and opening/closing auction mechanism at the same time, the order will be rejected.
    In DXE Periodic Auctions will not be supported for REGM symbols.

Will there be any market data interface changes?

Each environment will only support values for their respective venue in the ExecVenue and CboeTradeFlags fields on Multicast and TCP PITCH, as described in the off-book and Cboe LIS columns of Table 1 above.

Will there be any reference data file format changes?

  • Symbol reference data file:

    The regulated_entity column (the last column) in the symbol reference data file will be removed in UAT effective Monday 8th July 2019 in UAT and production Monday 5th August 2019 in production across all environments.

    The mic column shall be populated with the value of CEUX for symbols uniquely listed on the NL regulated market.

    The bloomberg_bats and reuters_ric_bats columns present in the symbol reference file for each environment will be as described in Table 2 below. Use of these exchange codes is subject to agreement with Bloomberg and Refinitiv.

    Venue Bloomberg Exchange Code
    (bloomberg_bats)
    Refinitiv (Reuters) Exchange Code
    (reuters_ric_bats)
    BXE EB .BS
    CXE IX .CHI
    DXE I2 .DXE
    Table 2: Exchange Codes
  • Third party static data file:
    The jurisdiction column (the last column) in the third party static data file will be removed in UAT effective Monday 8th July 2019 in UAT and production Monday 5th August 2019 in production across all environments.
  • Trade data file:
    The contra column in the Trade Data File will be populated with the value of CEUX for DXE for all order book executions.
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Pricing

Will the LPS scheme launched on 1st April 2019 apply to both venues?

Yes.

What will the pricing be for the new NL venue?

The new pricing scheme will be announced in due course.

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UAT and Production Environment Access

Will there be a DXE UAT environment? When will the environment be available?

Yes, a DXE UAT environment will be available.
Order entry, ODROP and FIXDROP ports can be requested from Monday 8th July 2019.
Ports will be usable for testing from Monday 29th July.

When will the DXE Production environment be available?

Order entry, ODROP and FIXDROP ports can be requested from Monday 5th August 2019.
Ports will be available for trading test symbols on weekdays from Friday 23rd August 2019.
Production dress rehearsals for trading live symbols will be arranged for Saturday 31st August, 14th September and 28th September 2019. Participants will be expected to attend at least one of these dress rehearsals, unless they have connected to production during the week and entered an order or ETR via at least one of their ports from Friday 23rd August 2019.
Production will be live for trading from start of day on Tuesday 1st October 2019.

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Regulatory Data and Transaction Reporting

Do I need to supply an additional long code mapping file via the Identifier Management application for any order activity on the NL venue?

No. Long to short code mappings shall apply to both the UK and NL venues; Participants will therefore only be required to upload their mappings once for them to apply to both venues. As a consequence of this participants will not be able to use a different mapping per short code for each venue.

Will I need to provide transaction reporting information in the event of a Brexit with an implementation period (deal)?

Only Non-UK or EEA Participants (current third country firms such as Swiss or Cayman regulated firms) on each venue respectively will be required to submit transaction reports to Cboe UK and NL separately, in order for Cboe to meet its obligation to the FCA and AFM respectively.

Will I need to provide transaction reporting information in the event of a no deal (hard) Brexit?

Cboe UK is required to transaction report for transactions conducted on the RIE by members who are not UK regulated, except for EEA firms operating through a branch and who are subject to FCA transaction reporting requirements under the temporary permissions regime. Cboe NL is required to transaction report on behalf of any non-EEA members trading on its markets.

What trading activity is in scope if I do need to transaction report?

The only on-exchange activity that is potentially exempt from transaction reporting is exchange trade reports (ETRs) that are used for settlement purposes.

What solutions are on offer in the event I need to transaction report?

  • Cboe Regulatory Transaction Reporting Gateway:
    Participants should use the Cboe Regulatory Transaction Reporting Gateway (RTRG) service to submit transaction reports to Cboe Europe who will then forward them onto the required regulator. The specification for this service can be found here and Participants who need to begin using this service should contact Trade Desk to begin on-boarding.
  • Cboe Deal Capacity Offering:

    The introduction of participant short code information on orders through MIFID II means that (if used correctly) Cboe Europe have the information required to generate transaction reports for clients conducting trading activity in a Deal (Principal) capacity. Participants opting in to this offering will have transactions for their order book executions generated and sent to the required regulator by Cboe. Please note that at this time, ETRs are excluded from this service and therefore any non EOD ETR transactions will need to be submitted to Cboe Europe via the RTRG. Participants wishing to use this offering should contact their Account Manager who can provide the next steps.

    Participants can opt in to this offering at a bank code (clearing firm) level. Any bank codes that have opted in, which submit orders matching the below, along with any non EOD ETRs, will be rejected:
    • AOTC (Agency) orders
    • MITCH (Riskless) orders
    • Orders submitted without both an execution and investment short code
    • Orders submitted with non-registered short codes. For a registration to be considered valid, it must be uploaded by 5am UK time on the day it is to be used. Any registrations after this time will not take effect until the next trading day.
    In addition, Participants must:
  • Cboe Regulatory Transaction Reporting Gateway via UnaVista:
    Cboe are currently working with UnaVista to offer the Cboe Regulatory Transaction Reporting Gateway (RTRG) as a destination for their clients transaction reporting files. This solution will allow participants to submit to the RTRG using their existing UnaVista offering. Customers of UnaVista should contact them directly to express interest it the use of this service and to discuss what is involved / required of them. Participants wishing to use this offering should contact their Account Manager who can provide the next steps.
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Cboe LIS

What are the plans regarding Cboe LIS in the event of a transition deal being established with no share trading obligation?

The Cboe LIS product will only be available on the UK venue offering trading of UK, Swiss and EEA symbols. EU firms would need to maintain a UK venue membership in this scenario in order to use the Cboe LIS product.

In the event of a hard Brexit do the above plans change?

Yes. In case of a hard Brexit the NL venue would launch with DXE offering the Cboe LIS product supporting EEA stocks with the execution MIC of LISZ. The existing Cboe LIS product on the UK will then only support trading in UK and Swiss symbols and will continue to have the execution MIC of LISX.

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Approved Publication Arrangement (APA) and Systematic Internaliser (SI) quoting services

Are Cboe still launching the NL based APA and SI quoting services?

Yes. These NL based services will launch on Monday 2nd September 2019.

Has Cboe’s previously announced technical implementation for controlling which APA a firm trade reports to changed?

No. As previously announced, the APA associated with the bank code (UK or NL) used for trade reporting into the Cboe APA is used to denote whether the trade report is targeting the UK or NL APA. Depending on the post Brexit plans of each firm using the APA, firms may need to request new bank codes (associated with the appropriate APA) and then populate the relevant bank code in the PartyID (FIX tag 448) field of the Trade Capture Report message on FIX and BOE interfaces.

On Multicast and TCP PITCH the Cboe Trade Flags field in the “Trade Message — Extended Form” and “Trade Message — Unknown Symbol” messages types are used to convey the Cboe Regulated Entity to which the trade was reported. As such, the Cboe Trade Flags field supports the following values:

Regulated Entity Description
UK EU
‘-‘ ‘4‘ The trade was reported to Cboe on time and in the Main Session
‘1‘ ‘5‘ The trade was reported to Cboe ‘late’
‘2‘ ‘6‘ The trade was reported to Cboe out of the Main Session
‘3‘ ‘7‘ The trade was reported to Cboe late and out of the Main Session

The Cboe Trade Flags field will continue to publish solely the UK set of values through to the end of business on Friday 30th August 2019. After this date, the field will reflect either UK and EU values depending on the Regulated Entity location of the trade.

When will UAT be configured to operate with a UK and NL APA?

The APA UAT (Certification) environment is currently configured to use the bank code for trade reporting to determine which APA the trade report is applicable to.

Are there any special considerations related to multi-day TCRs submitted over the NL APA launch window?

Yes. As described above, the CboeTradeFlags field will contain either UK or EU values depending on the regulatory jurisdiction of the bank code used for trade reporting into the Cboe APA. All TCRs submitted prior to the NL APA launching, but are deferred for publication post-NL APA launch will still receive the existing UK values when published. Any amendments or cancellations to such TCRs will also receive the UK values. Participants and vendors should therefore be able to accommodate this over this transition window.

Similarly, if the bank code used for trade reporting has an EU jurisdiction and a TCR is submitted post-NL APA launch, then EU values will be provided in the Cboe Trade Flags field, even if the arrangement time occurred pre-NL APA launch.

What do I need to do to ensure my entity is reporting to the correct APA?

You should previously have informed Cboe of whether your firm would like to report through the UK or NL APA. This configuration will be carried forward and apply automatically from Monday the 2nd of September 2019. If your plans have changed since your informed Cboe of the APA that you wished to use, you will need to inform us of your revised plans. Any new on-boards will be required to specify which APA they wish to report through.

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