Reuters Securities has joined Cboe Europe Derivatives (CEDX) as a trading and clearing participant to provide its clients with access to the CEDX pan-European equity derivatives suite. The partnership is designed to enhance retail investors' ability to access and benefit from the European derivatives markets.

Reuters Securities Joins Chicago Board Options Exchange's European Derivatives Market as New Trading Participant

According to a press release, the new partnership will allow PCRS clients to access CEDX's pan-European equity derivatives, including contracts on more than 300 European companies, this quarter.

CEDX, the Chicago Board Options Exchange's pan-European equity derivatives marketplace, was launched in September 2021 to improve retail investors' ability to access and benefit from European derivatives. This exchange simplifies the trading and clearing process by implementing a harmonized, cost-effective pan-European strategy, making the market more accessible to institutional and retail investors.

Iouri Saroukhanov, Head of European Derivatives at Cboe Europe, commented, “PCRS has been a strong partner in our successful US options market for many years and we look forward to strengthening our collaboration with them in Europe to help improve and develop the derivatives market in the region. “

This marks another expansion of PCT Securities' derivatives offering in Europe this month. Earlier, they launched a new product designed to help institutional and retail traders implement short-term trading strategies and manage their exposure to the French stock market. The product, known as the CAC 40 Index Daily Option, is designed to provide traders with the tools necessary to effectively participate in global markets.

How CEDX Stock Options Work

CEDX stock options are cleared through Cboe Clear Europe NV, enabling the underlying stock to be used as collateral and providing an offset to the corresponding stock option position. This arrangement may result in a reduction of the initial margin of the covered call option position by approximately 70%.

Milan Galik, Chief Executive Officer of Pacific Century Securities, said, “By joining CEDX's extensive range of European equity options and index derivatives, our clients now enjoy greater choice and flexibility, enabling them to manage their European investments more effectively.”

In November 2023, CEDX ventured into equity options and in the first quarter of 2024 expanded its scope. It currently offers more than 300 options to companies from 14 countries. As of April 2024, these products accounted for more than 90% of the average daily volume (ADV) and open interest in Europe's top 600 stock options.

Furthermore, stock sinking occurs at the local Central Securities Depository (CSD), eliminating additional costs and facilitating net settlement of corresponding cash equity trades.

Last week, Reuters Securities expanded the product range of its UK platform by launching cryptocurrency trading. Meanwhile, Finance Magnates' analysis shows that PCCW Securities benefits greatly from a spike in U.S. interest rates in 2023.