Ed Tilly – The Path to Electronic Trading

Suzanne Cosgrove

Suzanne Cosgrove

Editor

 

Veteran Trader Turned Exchange Executive Shares His Experience of Moving Cboe from Open Outcry to a Hybrid Trading Model 

In a recent Zoom interview with John Lothian News for the JLN MarketsWiki Education Path to Electronic Trading series, Cboe Global Markets Chairman. President and CEO Ed Tilly shared the story of his start in the options industry and how that led him on a path towards electronic trading. 

Tilly started at the Cboe in 1987 as a clerk working for legendary futures and options trader Steve Fossett. He spent time learning the business from Fossett and his team and finally became a trader for Fossett.

He joined a number of different Cboe committees, including the Equity Floor Procedures Committee, which helps determine how orders can be executed on the trading floor — at that time all through open outcry. He eventually was named chairman of that committee, serving while Cboe redefined itself as a hybrid trading floor. 

Tilly was elected as vice chairman of the exchange by his peers, then joined the exchange’s management team in 2006 as an executive vice president hired by former CEO Bill Brodsky. He moved up to CEO in 2013 when Brodsky stepped aside and was elected to serve the additional role of chairman in 2017 as part of the Bats Global Markets acquisition. He added president to his title in January 2019.

He said he learned the importance of transparency, leadership and honesty from Bill Brodsky as they managed a changing trading environment for both members and exchange leaders. He also helped the Cboe respond to the competitive challenge presented by the International Securities Exchange, the first all-electronic options exchange in the U.S.  

Tilly was part of the second generation of Cboe traders that was later replaced by more quantitative-focused traders. At the same time, its membership evolved from independent traders to include the biggest trading firms in the world.

The pandemic inspired the next leap in trading tools after the Cboe trading floor was temporarily closed in March 2020. The question of when the trading floor will be permanently closed will ultimately be up to Cboe’s customer base, Tilly said.

John Lothian Newsletter

Today’s Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

Now Read This

Tom Sosnoff – Open Outcry Traders History Project

Tom Sosnoff – Open Outcry Traders History Project

The CEO of tastytrade, Tom Sosnoff, was interviewed by John Lothian News for the Open Outcry Traders History Project. Sosnoff was a trader on the floor of the CBOE for 20 years after growing up in New York. He moved to Chicago at the behest of some co-workers at his...

ISDA 35th AGM: Are Derivatives a Green Solution?

ISDA 35th AGM: Are Derivatives a Green Solution?

Unraveling how to effectively mitigate the economic and market risks associated with climate change was the focus of an ISDA meeting session on Tuesday, but while the panel of international regulators and banking officials outlined their considerable and ongoing efforts, a clear path to a uniform solution remained elusive.

THE JOHN LOTHIAN NEWS DAILY UPDATE – 5/7/2021

  The John Lothian Daily Update is a podcast turning the daily JLN hits and takes comments, our original content and the stories and quips in the top box of First Read into a daily podcast.   Hits & Takes JLN StaffJohn Lothian News is going to start a...

Pin It on Pinterest

Share This Story