Download CBOE SYSTEMS ACRONYM DICTIONARY

CBOE SYSTEMS ACRONYM DICTIONARY
As of February 10, 2004
ABP (Automated Book Priority) Split Price enables RAES-eligible
orders to trade with EBook when RAES is available & when the book is
the best price, and fill the remainder of the order against the RAES wheel
at the autoquoted price when Autoquote is the next best price. Operative
in non-Hybrid classes.
API – Application Program Interface: Specifies the communication
method and messages for one computer system to communicate with
another.
AQV - AutoQuote ‘V’, as in version 5.0: This is the first version of
Autoquote to run on highly available servers.
BART - Booth Automated Routing Terminal: The BART system enables
firms to maintain orders in electronic format (rather than printing them
at the booth) and to route them electronically 1) via ORS parameters to
EBook, the Floor Broker (on PAR) or RAES; 2) a Floor Broker in a crowd;
3) a printer in the booth; or 4) a specific PAR terminal.
BERS - Booth Entry Routing System: This booth-based facility allows for
phoned-in orders to be manually input and sent to ORS by the member
firms in a manner consistent with COATS systemization requirements.
BO - Back Office systems: A collection of client/server and mainframe
systems that support the pre- and post-trade data requirements. This
group of systems includes Membership (including Voting), Badges,
Jackets & Coatroom (BJC), Integrated Billing (IB), and Integrated Class &
Series (ICS).
CBOEdirect® – The trade name for CBOE’s new trade engine.
CBOEdirect is the basis for Hybrid, ONE, the new CBOE Futures
Exchanges and the new (2004) stock trading system.
CFE - The CBOE Futures Exchange is a new futures exchange that is
owned by CBOE. CFE is a fully electronic exchange that uses
CBOEdirect as its trading platform.
CMi – CBOE Market interface: The CBOEdirect interface between the
CBOEdirect trade engine and member firms.
CMTA – Clearing Member Trading Agreement: Trade Match allows
executing firms to have the trade cleared at OCC through another
specific clearing firm by providing a CMTA firm’s number on a trade
record sent to clearing via CBOE’s Trade Match system.
COATS – Consolidated Options Audit Trail System: A system to provide a
consolidated daily audit trail of quotes, orders and trades for all
multiple -listed products from all options exchanges to the SEC pursuant
to an SEC requirement and for use in CBOE surveillance.
COMPASS - COMMon PASS-through system: COMPASS supports
communications with the member firms for handling wire orders, fill
reports and trade match data, as well as fill reports going back to the
firms.
COPP - CBOE OPRA Participant Processor: COPP sends quotes and last
sales from CBOE to OPRA in New York. Current peak daily message
traffic through COPP is over 30 million quotes (4/4/2000), with a n
average of 14.3 million per day for the last four months of 2002. Also see
TSS.
CTM - CBOE Trade Match system provides a facility for members and
firms to access and maintain their trade data. After all the data has
been captured it is matched and sent to clearing at the OCC.
CWN – CBOE Wireless Network: The communications network used to
support both infrared and radio wireless applications on the trading
floor.
DB - Database: A computerized facility that holds data in a structure
designed for easy access.
DM – Display Manager: The application which controls the overhead
displays on the trading floor, providing market data, underlying, news
and other information.
DTCC – Depository Trust & Clearing Corporation: The DTCC, through its
subsidiaries, provides clearance, settlement and information services for
equities, corporate and municipal bonds, government and mortgagebacked securities and over-the-counter credit derivatives. In addition,
DTCC is a leading processor of mutual funds and insurance
transactions, linking funds and carriers with their distribution networks.
EB or EBook - Electronic Book ("the book"): EBook supports the order
book and interfaces with the other core trading systems (TSS, ORS, and
RAES) at CBOE.
EBFE - Electronic Book Front End: An enhanced user interface to the
Electronic Book. EBFE is a windows based client terminal.
e-DPM - Electronic Designated Primary Market Makers are a new class
of CBOE members that will stream quotes remotely into CBOE’s hybrid
market to enhance the liquidity base provided by Designated Primary
Market Makers (DPMs).
eMM - Electronic Market Maker are floor-based CBOE Market Makers
that will be enabled to stream quotes into CBOE while they are away
from the floor.
ETH – Extended Trading Hours: Trading befo re or after regular (daytime)
trading hours.
ETN – Electronic Trade Notification: A message sent to a given Handheld
indicating that a trade has been done on RAES on behalf of the trader,
pending his/her acceptance.
FBW - Floor Broker Workstation has functionality to enter, capture and
maintain all types of orders from a Booth and Crowd in compliance with
COATS systemization requirements. FBW also provides derived order
functionality in support of order handling and trading in Hybrid classes.
This system is currently provided by a vendor.
FIX – Financial Information EXchange: A standard set of messages for
communicating orders, fills, quotes and other market data between
financial market participants. This standard is maintained by the
International FIX organization with a website at www.fixprotocol.org.
FLEX – Flexible Options contracts: variable term contracts for which the
specifications and trading procedures are provided under Chapter 24A of
CBOE Rules. FLEX are traded on a stand-alone system that is not
linked to the other floor-trading systems.
GUI – Graphical User Interface: The windowed information screens
accessed by users of a system, as contrasted with a character-based
terminal typical of older technologies.
HOSS – Hybrid Opening System: A subset of the Hybrid Trading System
used to rapidly open all series in a class simultaneously using both
quotes from market participants and resting orders in the book. NonHybrid classes use a similar opening system, or ROS.
Hybrid – The trading system is the synthesis of open outcry and
electronic trading. Hybrid classes use the CBOEdirect trade engine
instead of RAES and EBook. ROS, ABP & LOU are not used with Hybrid.
Members send in competitive quotes or ICM orders to participate in
trading orders remaining in CBOEdirect or with each other. Open outcry
trading continues to be used to address orders routed to PAR or to
consummate market-maker to market-maker trades.
HyTS Terminal - Belzberg Technologies developed an external terminal
used to access the CBOE Hybrid Trading System.
IB - Integrated Billing: An application that receives billing feeds for
various trading and non-trading transactions and creates the reports and
statements used by Accounting to bill members firms.
ICM - In Crowd Market Makers are floor-based CBOE Market Makers
that can stream quotes or ICM orders into CBOE while they are standing
in the trading pit.
ICM Orders - Orders sent by ICMs that function as one-sided quotes.
Also known as I-orders.
ICS - Integrated Class & Series: ICS is a back office system that is used
to define all the options products currently being traded at CBOE.
ICT – Integrated Case Tracking: The regulatory application and
repository that tracks Regulatory Services Division examinations,
surveillance, investigations and related information.
ILX - ILX is a market data vendor that supplies market data to PCs
located on the trading floor.
IQOD – Inquiry Order Display: A subsystem of TPF that allows queries to
be made on the status of an order submitted to ORS. Use o f this system
requires an ORS identification number for each order.
HAPS – High Availability Printer System: This system controls the new
network-based printers that are being rolled out the trading floor.
LAN - Local Area Network: The system of wiring, cables and software that
interconnect various computers. LANs provide the linkage for
communications between computers.
Linkage - (Intermarket Options Linkage Plan): The registered U.S.
options markets are linked together on a real-time basis through a
network capable of transporting orders and messages to and from each
market. The linkage is expected to increase market efficiency, enhance
competition, facilitate the offsetting of investor’s orders, and contribute to
the best execution of such orders. Linkage is governed by the Options
Linkage Authority (OLA) under the conditions set forth by "the Plan"
approved by the US Securities and Exchange Commission (SEC).
MDH – Market Data Retrieval in Hybrid (i.e. MDR for Hybrid classes)
MDR - Market Data Retrieval: MDR contains all reported quotes and last
sales in time sequence. It is an audit trail of trading floor transactions.
This data is maintained in the TSS system on TPF and then passed to an
Oracle database for storage of MDR history.
MMHH or MMT - Market Maker Hand Held or Terminal system: Market
maker handheld terminals are the end -user devices in the MMT system.
The handheld trading devices are touch-screen PCs that connect via
wireless communication links or via tethered network connections to
application servers (APs), which in turn, connect to the rest of CBOE
systems.
Mobile PAR - Mobile PAR provides the same functionality as PAR, except
it uses mobile terminals that employ RF (radio frequency) wireless
communications. Mo-PAR is typically used by non-DPM floor brokers.
MSS - Market Surveillance Systems: Systems Development group that
supports the Regulatory Division.
MVS - Multiple Virtual Storage: An older IBM mainframe operating
system. CBOE’s older Back Office systems are built on an MVS platform.
NASDAQ - NASDAQ is the largest electronic screen-based equity
securities market in the United States.
NBBO – National Best Bid and Offer
NCC – Non CBOE Computer: The application program interface used
between third party software vendors and CBOE systems. NCC is used
for MMT, SEF, ROS, and Vendor Quote.
NMCB – Non-Member Customer Business:
NMS - National Market System
OLA - Options Linkage Authority: Five options exchanges formed this
group to oversee the Options industry linkage plan. The OCC is the OLA
Facilities Manager and BOX is also a member.
ONE/OneChicago - The futures exchange that is co-owned by CBOE,
CME, and CBOT. OneChicago is a fully electronic exchange that uses
CBOEdirect as its trading platform.
OO - Object Oriented: A newer development technology that combines
data with the rules and methods to access and use the data. This
combination of data with rules and methods is known as an object.
OPRA – Options Price Reporting Authority: OPRA is a national market
system plan that governs the process by which options market data are
collected from participant exchanges, consolidated, and disseminated.
Consolidated data help ensure that broker-dealers, markets, and
investors have the best prices available for an option, from all markets
trading that option class. It assists customers in setting the terms of
their orders and in monitoring how well their brokers execute their
orders. Consolidated data also assist brokers and markets in providing
the best execution possible for an order.
ORS - Order Routing System: This TPF system handles options orders
from member firms that come into CBOE via COMPASS, BERS, FIX/ORS
or CBOEdirect. ORS then routes these orders to the appropriate location.
ORS offers various parameters to each firm for determining how their
orders will be routed. These parameters include marketability, size,
contingency information, and market conditions. Destinations include:
RAES, PAR, EBook, BART, or crowd printers. In Hybrid trading the
CBOEdirect book is used instead of RAES or EBook.
OSF – Order Service Firm
P – abbreviation for a Principal order in Linkage
PA – abbreviation for a Principal-acting-as-Agent order in Linkage
PAR - Public Automated Routing system: This system is used by
floorbrokers to receive and trade orders. The se orders are delivered
electronically by ORS, based on CBOE and member firm routing
parameters.
PDS - Post Data Server: This server is used for market data distribution
and class/series information by various display and processing systems
on the trading floor. It is part of the PSP architecture and is considered
part of a POD.
PSP - Post Support POD: The PSP architecture uses a cluster (POD) of
highly available servers at each post to support MMT and PAR.
Pulse – An Internet-based alternative to OPRA for members and member
firms to get real-time market and other data for CBOE.
QRM – Quote Risk Monitor
RAES - Retail Automatic Execution System: RAES is operable only in
non-Hybrid classes. This system allows eligible retail market (or
marketable upon receipt) orders to be executed automatically against a
rotating list of market makers or against Ebook (see ABP). The orders
are sent in by the member firms through ORS.
RCN - Reconfigurable Control Node: The RCN system utilizes market
data servers and reconfigurable display systems to provide market data
to the overhead monitors in each crowd.
RFQ – Request For Quote: A message generated by both the FLEX and
SBT systems to obtain a quote for a participant when there is no quote in
the market for a particular product.
RJE – Remote Job Entry: an older, proprietary (IBM) communication
technology, used by CBOE to transmit data and reports between CBOE
and member firms.
ROS - Rapid Opening System: This subsystem of EBook (operable only
in non-Hybrid classes) rapidly opens all series in a class simultaneously
using autoquoted prices in combination with orders resting in EBook.
The system resides mainly on the TPF mainframe and uses a workstation
client for input. A similar opening system (HOSS) is used in Hybrid
classes.
RMM - Remote Market Makers are a new class of CBOE members that
will stream quotes into CBOE to enhance the liquidity base provided by
market makers.
RTH – Regular Trading Hours
S – abbreviation for a Satisfaction order in Linkage.
SEF – Stock Execution Firm: A firm connected to CBOE that executes
stock orders sent to it by members on the floor from their handheld
terminals.
SEMS – Stock Exchange Management System: CBOE’s structured
products and stock trading system. SEMS will be replaced in 2004 by
stock trading on CBOEdirect.
SIAC – Securities Industry Automation Corporation: SIAC runs the
computer systems and communications networks that power the two
exchanges NYSE and Amex and disseminate U.S. equities market data
worldwide.
SNA – System Network Architecture: an older, proprietary (IBM) network
communication protocol. CBOE is in the process of replacing this with
TCP/IP.
TAT - Trade Acknowledgement Tickets are produced by the ORS/RAES
systems as an order is filled. The information is associated with a RAES
trade where the trader was the contra.
TCP/IP – Transmission Control Protocol / Internet Protocol: The
standard protocol used for communication over the Internet and many
other networks.
TIPS - TIcker Plant System: This system is used to receive and distribute
the various outside data feeds (underlying security prices, options
quotes, etc.) necessary for maintaining accurate displays on the trading
floor. Also calculates selected proprietary index values.
TNT – The New Terminal: A Windows workstation that debuted with the
start of Decimal trading. TNT supports the following functions: Class
Display Update and Market Indicator Update, Fill Reporting, IQOD,
BERS, MN - Maintenance, CR - Cancel Report, and CX - Cancel Request.
TPF - Transaction Pro cessing Facility: An IBM operating system for
mainframe computers designed for high performance. CBOE’s current
trade engine for non-Hybrid classes (ROS, ORS, RAES, EBook, TSS, and
MDR) is built on the TPF platform.
TSS - Trade Support System: TSS holds the product database
(class/series), handles the Quote Reporting and Price Reporting
functions, and maintains the MDR audit trail. In addition, it is
responsible for disseminating all market activity to all internal systems,
as well as to the outside world, through COPP.
TTT – Trade Through Tickets: Potential NBBO trade -throughs, Firm
Quote and Book Priority alerts are reported and printed on tickets for
regulatory review. TTTs are handled by Trading Floor Liaisons from
Market Regulation.
UMA (Ultimate Matching Algorithm) - UMA is the new matching
algorithm used for Hybrid trades in the CBOEdirect book. UMA allocates
an incoming order to participants based on the number of participants
and the size each participant represents.
VIC - Volatility Index Calculator calculates and distributes the volatility
indices for index options (OEX and SPX).
VTATS – Visual Trade Acknowledgement System: A display board or
terminal in the Index pits that show RAES trades as they occurred.
WAQ – Windows-based AutoQuote: The Windows replacement for the old
DOS-based Autoquote Modeler terminals operable in non-Hybrid classes.