CBOE Holdings Inc. has announced an investment Tradelegs, a New York-based analytics and decision-support technology. CBOE, the holding company for the Chicago Board Options Exchange and the CBOE Futures Exchange, made the announcement Wednesday at the International Futures Industry Conference in Boca Raton, Fla. The undisclosed investment is subject to delivery of a definitive agreement between the parties.
The Tradelegs Derivatives Strategist platform calculates investment scenarios based on users’ tailored parameters and the opinion of specific securities. Currently, the technology is used by a range of professional investors, including hedge funds, mutual funds, pension funds and insurance companies. CBOE CEO Ed Tilly said the investment is a “natural fit” given the CBOE’s “strategic objective to further expand the institutional use and appeal of options trading, including with our proprietary index products.”
Tradelegs’ founder and CEO Gideon Agar said the investment will allow the company to expand its options optimization services to include securities portfolios, which should happen later this year. Prior to founding Tradelegs, Agar was a managing director the private equity fund Patriarch Partners.