Securities futures exchange OneChicago put out a notice to members on August 13 that it would wind down trading operations and stop them entirely on September 18. The collaboration between the CME Group, Cboe Global Markets and Interactive Brokers ultimately fell apart after 19 years. The joint venture effort imagined as a battle between Chicago (derivatives) and New York (equities) is irrelevant today based on the changes to the industry, the markets and the firms themselves.
However, adding a securities futures exchange arm to the partner firms of 2020 probably makes more sense than doing it collaboratively with competitors. We might just see one or more of the partners start a new securities futures exchange as a go-alone effort. The Cboe and CME Group have little reason to work together today to make OneChicago work and probably even more reason to start their own securities futures exchanges.
“It was not New York that held single stock futures back, it was protecting existing business lines. Both CBOE and Nasdaq were guilty of this,” according to John Lothian News.