Cboe Futures Exchange, LLC (CFE) Binary Order Entry version 3 (BOEv3) is Now Live - Updates and Impacts

The Cboe Futures Exchange, LLC (CFE) Binary Order Entry protocol API has been updated from CFE Binary Order Entry version 2 (BOEv2), to CFE Binary Order Entry version 3 (BOEv3), and is now live.

What does CFE BOEv3 support?

The CFE BOEv3 protocol supports:

• Fixed length statically sized messages. Other than the variable number of statically sized repeating groups, all message fields are static and there are no optional fields. BOEv3 is nicely optimised for latency and computational overhead in encoding, decoding and parsing. 
• A single BOEv3 gateway per exchange matching engine whereby the older BOEv2 and FIX messages are processed through a BOEv3 gateway handler process before being routed to the exchange matching engine.
• Enhanced determinism. Inbound order, quote, modify, and cancel messages originating from any of the CFE BOEv2, FIX and BOEv3 order entry protocols are ordered based on receipt time at the BOEv3 gateway for the applicable matching unit.

Impacts of the Cboe Futures Exchange update

From a trading perspective, for trading operations that have latency-critical strategy requirements, using the BOEv3 API is the optimal option. However, doing so requires consideration over what exchange matching engine the target trade symbols are trading on.

For firms who do not have latency critical trading requirements, the BOEv2 and FIX based Order Entry APIs are routed through the BOEv3 gateway process. This is simpler as it provides access to all symbols over multiple matching engines without consideration of what symbols are traded on specific matching engines. But the additional routing hop from FIX/BOEv2 to the BOEv3 gateway adds a latency penalty.

In summary:

• BOEv3 = fastest access but more complex target symbol/matching engine considerations.
• BOEv2 and FIX Order Entry = simpler but slower.

Will a switch away from BOEv2 be required in the future?

It is important to note that the target state for CFE Order Entry protocols is support for FIX and BOEv3 only. The BOEv2 protocol access will be retired at an, as yet, unannounced date.

How Does OnixS Support this Change?

OnixS offers a maintenance service level guarantee forward migration path to users of the OnixS directConnect: Direct Market Access SDKs.

This means that existing OnixS CFE BOEv2 SDK customers who need to migrate to CFE BOEv3 already have access to the updated SDKs to enable them to do so.

For more information see the OnixS directConnect Cboe CFE Binary Order Entry (BOE) Handler.

Request Evaluation Access

Need to update for optimal latency using CFE BOEv3? Or need to get ready for CFE BOEv2 retirement?

You can request evaluation access to the OnixS directConnect: Cboe CFE Binary Order Entry (BOEv2 and BOEv3) SDK via the download form here.