BOX Options Exchange, LLC (BOX) is an automated

exchange Exchange or exchanged may refer to: Arts, entertainment and media Film and television * Exchange (film), or ''Deep Trap'', 2015 South Korean psychological thriller * Exchanged (film), 2019 Peruvian fantasy comedy * Exchange (TV program), 2021 Sou ...

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 faciliti ...

and owned by TMX and a consortium of broker-dealers. As an equity options market, it provides electronic order matching services to

stockbrokers A stockbroker is an individual or company that buys and sells stocks and other investments for a financial market participant in return for a commission, markup, or fee. In most countries they are regulated as a broker or broker-dealer and m ...

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 Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of Hand signaling (stock market), hand signals to transfer information pri ...

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 The Securities Exchange Act of 1934 (also called the Exchange Act, '34 Act, or 1934 Act) (, codified at et seq.) is a law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America. A land ...

. 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 difference, which is called the '' bid–ask spread'' or ''turn.'' Th ...

. BOX also provides

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, 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