Options Black Box (OBB)

What is it?

Our Options Black Box (OBB) solution provides options trade routing connectivity to all U.S. options exchanges, providing an immediate alternative to your current trade execution environment. OBB is provided in a high-availability environment, so while other solutions may be down, OBB will be up.

How does it work?

The Options Black Box (OBB) solution is a FIX compliant options routing engine that enables any order originator to eliminate the complexity and reduce the time required to connect to all U.S. option exchanges. OBB connects to your Order Management System (OMS) through a single connection, providing instant, direct connectivity to the automated option execution systems at NASDAQ, American Stock Exchange, Boston Option Exchange, Chicago Board Options Exchange, International Stock Exchange, Philadelphia Stock Exchange, and NYSE Arca (formerly Pacific Stock Exchange). Using a configurable set of client specific routing algorithms, your operational teams can configure the engine to rout trades by volume or by a client-designated exchange, providing a tailored and flexible environment.

Each exchange uses a unique combination of message formats; OBB accepts messages in the format (CMS, FIX, or propriety) produced by your current order management system and converts them to the form/dialect required by the destination exchange. Likewise, responses from the exchanges are converted to the format expected by your OMS. This conversion support eliminates the need for expensive customization to your order management system to interface with each exchange.

In addition to client specific routing algorithms, OBB also supports the identification of a default destination, which is used when the routing algorithms cannot determine a destination exchange. Additional functionality also provides for a backup destination, which may be used when the destination exchange is not operational.

OBB operates on mainframe class systems located in two fully redundant Kingland Systems data centers. These data centers are equipped with dedicated communication links to all US option exchanges as well as your location. We utilize advanced hardware and network management tools to detect and minimize the impact of any communication or network outage. Our investment in reliability enables your firm to focus on the options trading business and frees you from worry about connectivity to the exchanges.

Who uses it?

OBB is used by leading firms who require complete, reliable connectivity to the options markets.

How will it impact your business?

Option trading has been revolutionized during recent years with the worldwide creation of new options exchanges, increased number of investors, both professional and retail, and a dramatic increase in overall options volumes. In today's aggressive, fast-paced options trading environment, the ability to trade simultaneously on all U.S. options exchanges is critical. OBB will provide you with a highly available first option or back up plan for your options trading environment, providing you with simultaneous access to all U.S. options exchanges. This outsourced solution will reduce the complexity of your operational environment and minimize your network and communications costs. We are active in the industry and are always one of the first firms to be connected to new venues, most recently in 2008 as one of the few platforms in the initial group connecting to NASDAQ.