What is Cboe

In short: you can think of Cboe as an alternative ASX, just with some minor differences. 

Cboe, formerly known as Chi-X, is an ASIC-regulated stock exchange for Australian shares, just like the ASX.

Cboe trades continuously between 10am-4:13pm (Sydney) from Monday to Friday.

 

CBOE Logo

 

How is Cboe different from the ASX?

Cboe is an alternative trading exchange to the ASX. Both exchanges allow you to buy or sell the same Australian-listed stocks. 

In the case of purchasing a stock through Cboe, it operates in the same way as the ASX: 

  1. You make the transaction through a broker.
  2. The broker executes the transaction on the exchange.
  3. The stocks are registered to your Holder Identification Number (HIN) to mark your ownership. 

Here are some notable differences between Cboe and the ASX:

  • Cboe is a day-only trading exchange. Orders can’t be left overnight. This may make it faster to execute orders compared to the ASX (as there can be less backlog of other orders to compete with). 
  • Cboe has unique exchange traded funds (ETFs) and managed funds that aren’t available on the ASX. 
  • Unlike the ASX, Cboe does not operate an opening and closing auction[1]. More information about the ASX’s opening and closing auctions can be found here.

 

How does Market Index use Cboe?

Cboe allows us to access and publicly display live stock pricing on throughout Market Index. (To see this in action, check out BHP’s company page.)

By comparison, data licensing restrictions mean that publicly-displayed (i.e. not behind a login) ASX pricing is delayed by 20 minutes.

On Market Index, our live Cboe stock pricing updates data every 60 seconds.


What is the history of Cboe/Chi-X?

  • October 2011: Chi-X is launched as an alternative trading platform for Australian equities. Originally, only 8 stocks were available for trading. 
  • June 2013: a study by Michael Aitken from the Capital Markets Cooperative Research Center found that Chi-X brought $215m in ‘net benefits’ to the market in its first year, by providing savings from reduced trading costs thanks to competition with the ASX.
  • November 2013: Chi-X reports a weekly market share of 18.39% total trading volume, with a record market share of 24.67%.
  • July 2014: Chi-X’s market share hits a record of 29.86% (on July 11)[2].
  • June 2021: Cboe Global Markets (the US’ third-largest exchange operator) acquires  and renames Chi-X Asia Pacific Holdings, which includes Chi-X Australia. Cboe now allows users to trade every ASX-listed share. 
  • May 2022: Cboe launches the exchange’s first crypto ETF[3].

 

What is the Cboe’s equivalent of the S&P/ASX 200 index?

The S&P/ASX 200 is often referred to as the main index that tracks Australia’s overall stock market performance.

Cboe has a similar index, called the Cboe Australia 200 Index (aka the CXA 200 Index).

  • The index is a free-float capitalisation-weighted index.
  • It tracks the performance of Australia’s 200 largest publicly traded companies.
  • The CXA 200 contains about 80% of the Australian market (by total market cap). 

 

What can I trade on Cboe?

Along with over 2,000+ ASX-listed companies, the exchange also offers many unique, Cboe-exclusive ETFs and managed funds.

Here’s a list of products only available on the Cboe. 

 

What is the trading volume on the Cboe?

  • Over $3.8bn in cash equities is traded on the Cboe daily, according to Selfwealth[4]. 
  • Cboe have noted a maximum trading volume of $5.98bn
  • Cboe makes up about 20% of total Australian equity trading volume[5]. 

 

How do I trade on Cboe?

Most online brokers[6] allow investors to trade on the Cboe, including:

  • CommSec
  • NABTrade
  • Stake
  • Selfwealth
  • CMC Markets
  • Superhero

Generally speaking, you don’t have to specify for a trade to execute on Cboe or the ASX. Most brokers will automatically pick the one offering the best price for your order.

For example, here are the policies from a few different online brokers:

“As CommSec is connected to the Cboe [Cboe] Australia trading venue, CommSec may send all or part of your order to this venue to be executed, seeking the best possible outcome.” - CommSec, What is Cboe Australia? [7]

“As a market participant of ASX and Cboe Australia, [we have] an obligation to comply with the best execution obligations set out in the ASIC Market Integrity Rules. This means that we must take reasonable steps to obtain the best outcome (or “best execution”) for our clients when handling and executing client orders relating to those markets.” - NABTrade, Best Execution Policy. 

 

Can I buy shares on Cboe, then sell on the ASX? Or vice versa?

Generally speaking, yes (although you’ll need to check with your own broker). This is provided that:

  • You purchased a stock that’s available on both exchanges (i.e. not a Cboe exclusive ETF), and:
  • Your broker transferred ownership of your purchased equity to your own personal Holder Identification Number (HIN), rather than retaining the stock on their HIN as an intermediary. 

Ultimately, the ASX and Cboe are just exchanges to allow you to purchase Australian shares. Once you own those shares, you can sell them on whatever exchange you want.

 

Get started with Cboe Live

Up to the minute Cboe pricing now available on:

Click on the ‘Cboe Live’ tab above the stock price on company pages, or above a pricing table on any ASX Index page.

 

  1. https://www.commsec.com.au/support/help-centre/About-the-sharemarket/what-is-cboe-australia.html
  2. https://www.marketswiki.com/wiki/Chi-X_Australia
  3. https://www.financialstandard.com.au/news/first-crypto-etfs-launch-on-cboe-australia-179795091
  4. https://help.selfwealth.com.au/hc/en-au/articles/4413093485325-What-is-Chi-X-and-how-is-it-different-from-the-ASX-
  5. https://www.cboe.com.au/
  6. https://smallcaps.com.au/could-chi-x-win-crypto-race-direct-etf/
  7. https://www.commsec.com.au/support/help-centre/About-the-sharemarket/what-is-cboe-australia.html