Boston Options Exchange Group, LLC (BOX) is an automated stock exchange

Stock exchange

A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

 owned and operated by the TMX Group. As an equity options market, it provides electronic order matching services to stock brokers and traders.

Overview

BOX was founded in February 2002 by Boston Stock Exchange

Boston Stock Exchange

The Boston Stock Exchange is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834...

, Bourse de Montréal, and Interactive Brokers

Interactive Brokers

Interactive Brokers Group, Inc. is an online discount brokerage firm in the United States. The company traces its origin to 1977 when Thomas Peterffy bought a seat on the American Stock Exchange as an individual market maker, and formed T.P. & Co. the following year...

. In August 2008 BOX began operations as a subsidiary of the Montreal Exchange

Montreal Exchange

The Montreal Exchange or MX is a derivatives exchange, located in Montreal, that trades futures contracts and options on equities, indices, currencies, ETFs, energy and interest rates. Since 1965, it has been located in the Tour de la Bourse , Montreal's third-tallest building...

, after the technical operator increased its ownership position to the maximum 53.2 percent. Its equity partners include Citigroup

Citigroup

Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...

, Credit Suisse

Credit Suisse

The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...

, Interactive Brokers

Interactive Brokers

Interactive Brokers Group, Inc. is an online discount brokerage firm in the United States. The company traces its origin to 1977 when Thomas Peterffy bought a seat on the American Stock Exchange as an individual market maker, and formed T.P. & Co. the following year...

, JP Morgan, Morgan Stanley

Morgan Stanley

Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....

, UBS and Citadel

Citadel

A citadel is a fortress for protecting a town, sometimes incorporating a castle. The term derives from the same Latin root as the word "city", civis, meaning citizen....

 Derivatives Group LLC.

Services

The exchange offers options derivatives on approximately 1,500 different securities. It generates fully tradeable orders and provides multiple competing market makers. BOX also provides SOLA

Sola Trading

Sola Trading is an electronic trading system platform that manages the transactions of securities products for a derivatives exchange.SOLA supports the trading of various types of derivative models across all asset classes in cash, commodity and fixed income markets.The Sola Trading Platform is...

, a trading platform which matches or improves option prices and responds to orders in less than 20 milliseconds.

PIP Algorithm

BOX offers price improvement to traders through its patent-pending Price Improvement Period automated trading mechanism. PIP allows clients with broker guarantees on the first penny of price improvement a small period to improve upon available prices. In June 2007, BOX was named U.S. options exchange of the year by Futures and Options World Magazine. CEO R. Scott Morris

R. Scott Morris

R. Scott Morris is an American author, financial engineer and quantitative consultant. He is president of Morris Consulting, LLC, and served as CEO of the Boston Options Exchange from 2006-08. He has also served as Managing Director of Goldman Sachs and Partner at Hull Trading Company.-Education...

attributed BOX's success to the PIP algorithm, noting the "$110 million in savings to investors because of our price improvement model.”

Management

Chief Executive Officer: Mr. Tony McCormick
Chief Information Officer: Mr. John Goode
Senior Vice President of Business Development and Marketing: Mr. Alan Grigoletto
Corporate Secretary and General Counsel: Ms. Lisa J. Fall
Vice President of Finance & Administration: Mr. Vito Gendusa
Head of Market Operations and Vice President: Mr. Carl Miedaner