[authors: Daren R. Domina, Tanja Samardzija]

The Chicago Board Options Exchange (CBOE) has begun to transition the electronic trading capabilities of its existing FLEX options trading system (CFLEX 1.0) to its CBOEdirect trade engine. CBOE is effecting this transition by rolling out CFLEX 2.0. CBOE will initially make two classes of FLEX options available for trading on CFLEX 2.0 – the SPX and SPY. These two classes moved to CFLEX 2.0 on April 24. Additional classes will begin moving from CFLEX 1.0 to CFLEX 2.0 over the next one to three weeks.

A key difference between CFLEX 1.0 and CFLEX 2.0 is that a new order origin code applies to FLEX options for non-trading permit holder broker-dealers, i.e., order origin code “D”. On CFLEX 1.0, orders and responses for the account of non-trading permit holder broker-dealers use the origin code “C”. It is important to note that the new order origin code “D” pertains to FLEX options only.

Click here for CFLEX 2.0 rollout schedule, and click here for CBOE order origin code requirements.