In a recent note to clients, Adam Inzirillo, Head of North American Equities, shared what drove Cboe’s decision to update the Cboe EDGX® Early Trading session hours, along with some recent volume updates.
Effective Monday, December 7, the EDGX Early Trading session will begin at 4 a.m. ET. The reason we made this change is simple: we heard you. We take customer feedback seriously, so when we heard calls for earlier trading, we looked for a way to make it happen. In addition to seeing the greatest demand for earlier trading from our EDGX customers, we are also aware that the retail trading community is a big proponent of early trading. We are excited about the growth in retail trading and want to ensure the Cboe platform retail traders use most — EDGX — meets their needs.
We also know market data is a crucial part of making informed trading decisions, which is why our team is dedicated to delivering accurate, cost-effective and reliable data. For example, our Cboe One Feed disseminates quotes that are, on average, within 1% of the National Best Bid and Offer (NBBO), more than 98% of the time. Additionally, Cboe One Feed market data — which includes direct access to EDGX quote and trade data — as well as the EDGX market data feeds will be updated to support the new early trading hours, so you won’t miss any key insights across products. If you want to take a closer look at the numbers, download the Cboe One Feed historical data here.
Additionally, I thought you would be interested to learn about recent growth we have seen on EDGX. In October, EDGX market share reached a new all-time high, capturing 7.7 percent of the market. Across the board, Cboe’s U.S. equities year-to-date average daily volume was up 51 percent through October. Thank you for choosing Cboe and EDGX. As we grow our equities offerings further, we will continue to look to you to learn how we can provide better solutions.
We hope you are looking forward to this update as much as we are. If you plan to start trading during the early session, you can now test updated order matching and routing times, as well as order acceptance, in the EDGX certification environment. View the Tradedesk Update or fact sheet for more details.