Release Notes

Cboe Europe: Participant Readiness for Brexit

February 08, 2019 08:37:34

Dear Cboe Europe Participants

Cboe Europe Equities (Cboe) would like to announce the following dates to ensure Participant readiness for Brexit:

* Thursday 28th February 2019 - UK and EU venue membership paperwork due

* Friday 15th March 2019 - RTRG onboarding and certification due

* Saturday 16th March 2019 - Final Saturday Dress Rehearsal Test opportunity

* Monday 25th February to Friday 5th April 2019 - Onboarding & Testing Change Freeze - Cease on all non Brexit related onboarding and UAT testing activities

Further to the previous Exchange Notice and Guidance Note, Cboe Europe's team is in the process of executing its Brexit strategy that includes establishing itself as a EU27 Market Operator in Amsterdam in order to mitigate possible constraints to cross-border trading following the UK's departure from the EU in 2019. Cboe is taking this step to ensure that in the absence of an agreed 'exit deal' between the UK and the EU27, it can continue to serve its customers. However, we will continue to monitor the negotiations and will react as quickly as possible to any developments that would cause us to alter our strategy.

Participants will be unable to trade on the new venue until regulatory authorisation has been obtained and we have a confirmed launch date. Subject to successful completion of the application process, Cboe will configure new Participants to be able to trade in UK/CH and EEA 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.

Cboe therefore recommends that Participants ensure all connectivity is tested and membership paperwork has been completed by no later than Thursday, 28th February 2019 to guarantee readiness for Brexit, effective Monday 1st April 2019. Whilst Cboe will make every effort to ensure Participants are ready for Brexit on the effective date, membership paperwork received after Thursday, 28th February 2019 will be processed on a best efforts basis. Cboe previously announced Production Saturday Dress Rehearsal Tests which will allow Participants and vendors to simulate post Brexit system behaviour in Production in advance of Monday 1st April 2019. In order to prioritise the Brexit testing and configuration for Participants, Cboe are implementing a freeze on changes not related to Brexit including non-essential onboarding and UAT environments, effective Monday 25th February until Friday 5th April 2019.

Regulatory Transaction Reporting

Further to the previous Exchange Notice Cboe would like to remind Participants about the transaction reporting requirement when conducting cross border trading. Cross border trading is defined as trading activity conducted on a venue that is outside of the jurisdiction that the entity is registered. The only trading activity that is exempt from transaction reporting, is end of day on-exchange trade reports (ETRs) that are used for settlement purposes.

Impacted Participants

Existing non UK or EU regulated firms will need to continue to transaction report on the relevant Cboe venue, as appropriate.

Post Brexit, the following Participants will additionally be in scope:

* UK regulated firms who plan on conducting trading activity on the Cboe EU venue post Brexit

* EU regulated firms who plan on conducting trading activity on the Cboe UK venue post Brexit

To guarantee readiness for Brexit and to ensure Cboe meets its Transaction Reporting obligations, please ensure you have successfully certified and onboarded for the RTRG service by no later than Friday 15th March 2019. Further details on the RTRG service can be found in the RTRG Specification. For any general membership and RTRG queries, please contact your Account Manager. If your query is regarding the technical onboarding please contact the Trade Desk.

Please refer to the Guidance Note for specific details. All Participants are required to review the Guidance Note and ensure adherence to the timelines in Section 11 (page 17) for each of the upcoming mandatory changes.

Please contact the Trade Desk or your Account Manager if you have any questions.

Trade Desk

Cboe Europe Equities

11 Monument Street | London, EC3R 8AF

T. +44 207 012 8901

E. [email protected] | cboe.com >