BOX Options Exchange, LLC (BOX) is an automated

exchange Exchange may refer to: Physics *Gas exchange is the movement of oxygen and carbon dioxide molecules from a region of higher concentration to a region of lower concentration. Places United States * Exchange, Indiana, an unincorporated community * ...

operated by the

TMX Group TMX Group Limited is a Canadian financial services company that operates equities, fixed income, derivatives, and energy markets exchanges. The company provides services encompassing listings, trading, clearing, settling and depository facili ...

and owned by TMX and a consortium of broker-dealers. As an

equity options In finance, an option is a contract which conveys to its owner, the ''holder'', the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date ...

market, it provides electronic order matching services to

stockbrokers A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks a ...

and traders.

Overview

BOX Holdings Group LLC is the parent holding company of the BOX Options Market LLC (BOX Options), and BOX Digital Markets LLC. BOX Options was established in 2002 and launched trading in February 2004 as an alternative to the then-existing market models. BOX Options currently operates both electronic and open outcry venues for the trading of equity options. BOX Digital was founded in 2018 and is engaged in creating and developing markets for trading digital assets in a regulated environment. BOX Exchange LLC is a national securities exchange registered with the SEC under Section 6 of the Securities Exchange Act of 1934. BOX Options is an equity options market that is jointly owned by the

and a group of broker/dealers. BOX was established in 2002 and launched trading in February 2004 as an alternative to the then-existing market models.

Services

The exchange offers options derivatives on approximately 1,500 different

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

. It generates fully tradeable orders and provides multiple competing

market makers A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the ''bid–ask spread'', or ''turn.'' The benefit to the firm is that i ...

. BOX also provides

SOLA Sola is a municipality and a Seaside resort in Rogaland county, Norway. It is located in the traditional district of Jæren. The administrative centre of the municipality is the village of Solakrossen. Other villages include Tananger, Hål ...

, a trading platform which matches or improves option prices and responds to orders in less than 20 milliseconds.

PIP Algorithm

BOX offers price improvement to traders through its patent-pending Price Improvement Period automated trading mechanism. PIP allows clients with broker guarantees on the first penny of price improvement a small period to improve upon available prices. In June 2007, BOX was named U.S. options exchange of the year by Futures and Options World Magazine. CEO R. Scott Morris attributed BOX's success to the PIP algorithm, noting the "$110 million in savings to investors because of our price improvement model.”

References

External links

* {{Official website Financial services companies established in 2002 Companies based in Boston Stock exchanges in the United States 2002 establishments in Massachusetts Options exchanges in the United States

Overview

Services

PIP Algorithm

See also

References

External links