Release Notes

Cboe Europe: Brexit Participant Migration

September 17, 2018 11:24:26

Dear Cboe Europe Participants

Our Plan
To allow our Participants to continue trading EU-listed symbols post-Brexit, Cboe Europe (Cboe) is establishing a new EU-regulated venue in the Netherlands, Cboe EU Equities (Cboe EU) for the trading of EU-listed symbols. Cboe will also continue to operate its UK-regulated trading venue, Cboe UK Equities (Cboe UK), for the trading of UK and Swiss-listed symbols.

Depending on the details of any transition arrangements or an extension to the Brexit deadline, it is possible that the launch date of Cboe EU may be adjusted. In the event of a restrictive (UK third country recognition does not extend to EU-27 symbols) or "hard" Brexit, a firm may be prohibited from accessing either Cboe UK or Cboe EU by the regulations in its own jurisdiction. Therefore, access to the Cboe venues will depend on the Participant's own Brexit arrangements in combination with what may be possible under any eventual agreement between the UK and the EU.

The net result is that we need to gather information about your migration approach for continuing to trade your desired symbol universe across the Cboe UK and Cboe EU venues. Our approach for gathering the information relating to order and trade entry requirements is outlined below.

Certification Environment Approach
Cboe intends to generate Certification (UAT) Cboe EU configurations for Participants to test on demand from Monday 24th September 2018. Please note that these ports will be to allow Participant connectivity and separation of flow testing only. Functional changes required for Brexit will not be in place in the UAT environment until November. Please note that your Certification Environment setup is not always representative of your current Production Environment setup.

Production Environment Approach
Cboe believes that Participants will have differing Brexit arrangements and therefore will be required to complete an initial "Brexit Bank Code Selection" spreadsheet which will describe how you would like Cboe to migrate your existing and (where applicable) new firm. From Monday 17th September 2018 onwards your Account Manager will be in contact to discuss your plans and assist you in completing the "Brexit Bank Code Selection" spreadsheet to describe your desired end state.

From Monday 15th October 2018, Cboe will provide Participants a "Brexit Target Configuration" spreadsheet which will have been generated based on your responses provided in the "Brexit Bank Code Selection" spreadsheet. The "Brexit Target Configuration" spreadsheet will describe the bank codes and ports (FIX, BOE, ODROP, FIXDROP) that have been created for each of your firms. In the event Participants want to make any changes having reviewed the target configuration, then the "Brexit Bank Code Selection" spreadsheet should be resubmitted. Any feedback received after Wednesday 31st October 2018 will be subject to a 2 week turnaround time.

From Monday 19th November 2018, final configurations will start to be applied in production. Any changes required after the configuration has been agreed and applied will have to follow the standard Cboe change request process by sending an email to the Trade Desk team.

Interim Period
Please note that as Cboe is at the application stage with the Dutch Authority for the Financial Markets (AFM) for the authorisation of Cboe EU. Participants will be unable to trade on the new venue until regulatory authorisation is obtained and we have a confirmed launch date. If requested, and subject to successful completion of the application process, Cboe will configure new Participants to be able to trade in UK/CH and EU-27 symbols on the existing Cboe Europe Equities venue. To mitigate against the risk of not being able to trade on Cboe markets, should the Cboe EU venue launch be postponed it is strongly recommended that firms who intend to be participants of Cboe EU are also participants of Cboe UK Equities during the interim period.

Market Data Changes
As part of the approach to the migration, Cboe will be making changes to the current Multicast PITCH configuration which will impact the market data feeds to which Participants currently subscribe and the way in which associated Gap (GRP) and Spin Messages are requested. The changes will impact existing firms who are members of Cboe UK Equities and market data vendors who will be required to request new market data ports and subscribe to a new set of feeds. Details of these changes will be communicated by the end of November with a clear timeline of events to ensure there is sufficient time for Participants to implement the mandatory changes.

Certification Environment Timeline

* Monday 24th September 2018: Availability of UAT Cboe EU sessions for testing on demand which should be requested from the Trade Desk team.

Production Environment Timeline (Subject to change, pending regulatory authorisation):

* From Monday 17th September 2018: Discussion with Account Managers on migration model and bank codes to be migrated. Cboe will require Participants to complete a "Brexit Bank Code Selection" spreadsheet to help elicit the type of Brexit migration to perform

* From Monday 15th October 2018: Cboe will begin to provide Participants a "Brexit Target Configuration" spreadsheet based on their completed "Brexit Bank Code Selection" spreadsheet, which will outline the final Production configuration generated from 19th November 2018

* Wednesday 31st October 2018: Date for "Brexit Bank Code Selection" spreadsheet to be sent back to Cboe, any feedback received after this date will be subject to a 2 week turnaround period

* From Monday 19th November 2018: Final configurations will start to be applied based on feedback and agreement. Any changes required after the configuration has been agreed and applied will have to follow the existing change process by sending a request to the Trade Desk team. This is the earliest point from which Production configurations can be put in place

* Monday 19th November 2018 - TBC 2019: Change control window open

* End of November 2018: Market data configuration changes communicated

Communication
At this stage please direct all feedback to your Account Manager. Should you wish to be added to our distribution list for future EU Venue updates please send an email to [email protected] with your details or anyone else you would like included.

Trade Desk
Cboe Europe Equities
11 Monument Street | London, EC3R 8AF
T: +44 207 012 8901
E: [email protected] | cboe.com >