A Wholesale Trading Platform
Cheevers & Company, a wholesale trading platform, merged with Pensera in 2017, creating the Cheevers Division. Cheevers has been a member of the Chicago Stock Exchange since 1982, a member of FINRA since 1994, and provides execution and clearing services for some of the world’s largest banks and brokers.
Historically a niche player facilitating equity executions tied to exchange-traded derivatives, the Cheevers Division began with a single CHX seat and has grown to become one of the largest volume brokers on the CHX. On a daily basis, Cheevers wholesale trading desk executes and processes high volume, complex, multi-party equity trades tied to derivative strategies, or stock option package trades. The stock portion is contingent upon the execution of the option component, and the stock print is considered a Qualified Contingent Trade (“QCT”) under Regulation NMS and is exempt from Regulation NMS 611(a) trade-through provisions allowing Cheevers to print the equity leg outside the bid or offer. However, Cheevers is only allowed to use the QCT exemption based on the Securities Exchange Commission (“SEC”) Order found in Release No. 34-54389 which provides that a QCT is a transaction consisting of two or more component orders, executed as agent or principal, where:
- at least one component order is in an NMS stock;
- all components are effected with a product or price contingency that either has been agreed to by the respective counterparties or arranged for by a broker-dealer as principal or agent;
- the execution of one component is contingent upon the execution of all other components at or near the same time;
- the specific relationship between the component orders (e.g., the spread between the prices of the component orders) is determined at the time the contingent order is placed;
- the component orders bear a derivative relationship to one another, represent different classes of shares of the same issuer, or involve the securities of participants in mergers or with intentions to merge that have been announced or since cancelled; and
- the Exempted NMS Stock Transaction is fully hedged (without regard to any prior existing position) as a result of the other component of the contingent trade.
Cheevers also retains a full service clearing relationship for domestic equities through Merrill Lynch’s Broadcort Division. We also ensure that our executions flow correctly through the entire clearance cycle until the full settlement process is complete by providing a “Direct Give-Up” process on the Chicago Stock Exchange, resulting in seamless Regional Interface Output (RIO) clearing related to QCT transactions.
Dealer Execution Services Trading Desk: 312.663.2794 • 800.611.2794
For more information, please contact Ryan Peterson at firstname.lastname@example.org