EDGX is a prominent electronic stock exchange platform operating under the Cboe Global Markets umbrella. Originally part of Direct Edge, EDGX emerged as one of the two order-driven trading venues established by the company. Following its merger with Bats Global Markets in 2014, EDGX became part of Cboe's extensive trading network. Based in Jersey City, New Jersey, EDGX plays a pivotal role in U.S. equities markets, notable for its maker/taker pricing model propelling high rebates for liquidity providers. Catering to both retail and institutional investors, EDGX continues to stand out for its flexibility and technological advancements.
| Attribute | Information |
|---|---|
| Founding Date | July 21, 2010 |
| Headquarters | Jersey City, New Jersey, USA |
| Founders | Direct Edge LLC |
| Revenue | Not publicly disclosed |
| Profits | Not publicly disclosed |
| Key Investors | Cboe Global Markets |
| Industry | Financial Trading |
| Number of Employees | Part of Cboe Global Markets |
EDGX was launched as part of Direct Edge LLC, a firm aiming to provide innovative trading mechanisms through state-of-the-art technology. Officially commencing operations on July 21, 2010, alongside its sister exchange EDGA, EDGX quickly gained traction among traders for offering significant liquidity and competitive rebates. The exchange model targeted liquidity providers through its maker/taker fee structure, incentivizing order flow and increasing market depth. The merger with Bats Global Markets in 2014 marked a significant turning point, aligning EDGX with one of the largest equities market operators in the U.S., thereby expanding its trading capabilities and participant reach.
EDGX has maintained its position as a formidable player in the equity trading sector due to its focus on transparency, efficiency, and competitive pricing models.
Currently, EDGX operates as one of four U.S. equities exchanges under Cboe Global Markets, alongside BZX, BYX, and EDGA. Serving a diverse market base, EDGX is instrumental in processing a substantial volume of retail trades, which alone constitutes approximately 50% of its trading activity as of February 2021. Cboe's strategic initiatives, including the rollout of 24-hour trading, have set EDGX apart in the competitive market landscape. Its innovative pricing schemes aim to increase market participation, making it a preferred destination for advanced retail traders and institutional market makers alike. High rebates for liquidity provision and adaptive trading hours have contributed to its robust market share.
EDGX has cemented its significance in the financial trading sector through a flexible and technologically sophisticated platform that caters to a spectrum of traders. Positioned as an integral part of Cboe Global Markets, EDGX continues to evolve with the market's demands, especially following its developments like introducing 24-hour trading. Its focus on attractive pricing models and robust security continues to draw participation from both retail and institutional investors, ensuring its competitive edge in a dynamic market landscape. Looking forward, EDGX is poised to further capitalize on trading innovations and broaden its influence on the equities trading platform for years to come.