CBOE Also Embracing New Mobile Technology

By Maria Trombly | Securities Industry News | May 5, 2003

The NYSE isn't alone in using hand-helds on the trading floor. At the Chicago Board Options Exchange, 97 percent of trades come from the hand-helds, according to spokesman Gary Compton. Of those devices, 85 percent are proprietary models, brought in by the traders themselves.

In May, the exchange will be rolling out HyTS, a hybrid trading system that will combine floor trading and electronic trading (Securities Industry News, April 28). Offsite traders will access the hybrid system through terminals, but floor traders will be able to get into it right from their hand-helds, Compton said.

Besides reducing the paper that's used on the trading floor, the hand-helds may soon be reducing the sound level as well, replacing some of the yelling and shouting in the crowds.

Currently, the designated primary market-maker is responsible for maintaining the markets in their classes, and that will be expanded with the new hybrid system. As a result, other market-makers, standing in the crowd around the designated primary market-maker, will be able to post better bids and offers electronically, replacing some of the verbal activity that characterizes the exchange now.