The Chicago Board Options Exchange (CBEO) must decide how to respond to the new competition in the market for financial opportunities. Options generally have a very liquid asset class, despite the fact that many single-name options on the CBOE, the second largest options exchange in the world listed. In response to this illiquidity, new possibilities of exchanges have started with e-commerce, with the hope that the markets more liquid and capturing market share and profitability of the … Read more »

The Chicago Board Options Exchange (CBEO) must decide how to respond to the new competition in the market for financial opportunities. Options generally have a very liquid asset class, despite the fact that many single-name options on the CBOE, the second largest options exchange in the world listed. In response to this illiquidity, new possibilities of exchanges have started with e-commerce, with the hope that the markets more liquid and capturing market share and profitability of the CBOE. The CBOE now must decide whether to ignore the competition and continue with its ground-based model of trade or switch to an all-electronic trading model or some kind of hybrid model.
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from
George Chacko,
Unlike Sjoman,
Daniela Beyer villages,
George Robert Nelson
Source: Harvard Business School
26 pages.
Publication Date: Mar 08, in 2005. Prod #: 205073-PDF-ENG
Chicago Board Options Exchange (CBOE) HBR case solution

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