C2

CBOE

C2

C2 Options Exchange is an all-electronic U.S. options exchange and a wholly-owned subsidiary of CBOE Holdings, Inc. C2 operates a market model that employs a maker-taker fee schedule and a modified price-time matching algorithm for multiply-listed classes. C2 is powered by CBOEdirect.

C2 was designed to be a flexible options venue, an adaptable market model with the ability to keep pace with regulatory and technological change in the industry. The exchange benefits from the ability to list CBOE's exclusive products, including S&P 500 Index (SPX) options.

Per C2's maker-taker fee schedule, most liquidity providers are offered rebates, while price-takers are charged a fee. Trades executed on C2 are cleared and guaranteed by the OCC.

The exchange applies one of the following rules of trading priority for each option class traded on the system:

Price-Time Priority
  • Resting orders in the system are prioritized according to price and time.
Pro Rata Priority
  • Resting orders in the system are prioritized according to price. If there are two or more orders at the best price then trades are allocated proportionally according to size (in a pro rata fashion).
Price-Time with Primary Public Customer Priority and Secondary Trade Participation Right Priority
  • First priority is provided to public customers, second priority is afforded to Trade Participation Right recipients and remaining priority is handled in accordance with Price-Time Priority.