EDGX Options Complex Order Book LaunchMay 4, 2017

• Chris Isaacson, EVP, Chief Information Officer • Andy Lowenthal, SVP, Head of Global Derivatives• Kapil Rathi, SVP, Options Business Development

Customer Conference Call

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Agenda

Chris Isaacson, EVP, Chief Information OfficerOverview

Key dates

Order types and order entry

Andy Lowenthal, SVP, Head of Global Derivatives

Integration update

Kapil Rathi, SVP, Options Business DevelopmentMatching model

Auctions

Market data

Risk protections

Questions & Answers

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Cautionary Statements Regarding Forward-Looking InformationThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; increasing price competition in our industry; decreases in trading volumes or a shift in the mix of products traded on our exchanges; legislative or regulatory changes; increasing competition by foreign and domestic entities; our dependence on third party service providers; our index providers’ ability to maintain the quality and integrity of their indexes and to perform under our agreements; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to accommodate trading volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; our ability to protect our systems and communication networks from security risks, including cyber-attacks; the accuracy of our estimates and expectations; our ability to maintain access fee revenues; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; the ability of our compliance and risk management methods to effectively monitor and manage our risks; our ability to attract and retain skilled management and other personnel; our ability to manage our growth and strategic acquisitions or alliances effectively; restrictions imposed by our debt obligations; unanticipated difficulties or expenditures relating to the recently-completed acquisition of Bats Global Markets, Inc. (“Bats”), including, without limitation, difficulties that result in the failure to realize expected synergies, efficiencies and cost savings from the acquisition within the expected time period (if at all), whether in connection with integration, combining trading platforms, broadening distribution of product offerings or otherwise; our ability to maintain an investment grade credit rating; disruptions of our current plans, operations and relationships with market participants caused by the Bats acquisition; and potential difficulties in our ability to retain employees as a result of the Bats acquisition.

We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

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Overview

Why we’re launching

Longstanding ambition of ours to launch an electronic complex order bookAdds to our leading position in the U.S. options marketIncludes new order handling, risk management and trade-through protections for the best complex order book yetWe encourage your feedback

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Integration Update

How this fits in our broader integration efforts

Functionality will be the foundation for all complex orders on the CBOE markets currently migrating to Bats technology Planned new capabilities arrive only eight months after the acquisition of Bats closedDemonstrates our goal to operate one of the foremost derivatives trading businesses globally

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Schedule*

May 11: Technical specifications available

August 1: Certification available for testing

September 16: First optional weekend test

October 21: Second optional weekend test

October 23: Go live

Planned Dates

Microsite

www.bats.com/COB

*Subject to regulatory approval

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Initial functionality from October 23, 2017*, further to follow

Available immediately:

Options only complex orders

Complex order auctions

In due course:

Crossing orders

Stock/option orders

Implied orders

Staggered Launch

*Subject to regulatory approval

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All complex orders will trade in penny increments

Time in force

Day, IOC, FOK, GTD, GTC, Opening Only

PriceLimit, Market

AuctionsComplex Auctions, Complex Auctions Only (CAO)

Order types

All customers can trade all complex order types

Supported origin types

Customer, Firm, Market Maker, JBO, BD, Away Market Maker, Professional Customer

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Complex Strategies

Complex strategies up to 12 legs supported

Maximum and minimum ratio between the largest and smallest leg must be 3:1

All legs must be based on the same underlying symbol

All legs must deliver same number of shares

E.g. Can enter a complex order in series that are corporate adjusted, provided all legs are delivering the same number of shares.

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Customers have real time control on what instruments can be traded

BOE and FIX

Enter an order as a package

Looks like an order entered for a regular series

Complex strategy delineated by strategy instrument I.D., which must be referenced

FIXEnter an order by buying or selling individual legs

Order must include series, side, ratio

Exchange will create a new instrument

An existing I.D. does not need to be referenced

Complex Order Entry

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Key elements

Matching will be continuous

Complex orders can trade with other complex orders or orders on ‘regular’ book

Resting orders in the complex order book will be traded price/time

Priority model operates in case of price confluence

LeggingLogic for complex vs. ‘regular’

Deterministic – no best effort or delay

Matching Model

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OrdersComplex Order Auctions last 50 milliseconds

Customers have full control over whether orders are auctioned or not

Auction messagesDisseminated on auction feed only

Messages indicate price, size, side, customer or non customer, auction I.D.

Responses only trade against corresponding I.D.

Auction period end

Unexecuted response portions are cancelled back

Unexecuted auction orders placed on complex book unless marked IOC, FOK or Complex Auction only

Orders can trade with counter-side complex orders, responses or individual legs

Complex Order Auctions

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Top Of BookAggregated size on the bid and ask side of a complex order at the top price level

Complex Depth FeedSimilar to current depth of book feed and shows order by order information as they are entered, cancelled or traded

Complex Auction Feed

Auction messages only

Only complex auctions included at this time, future price improvements and crossing mechanisms to come

Common to all three:Strategy definitions as they are created, and members can request these on demand

Whether complex order was entered for a priority customer or non-customer

Market Data Feeds

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NBBO protectionsSpecify your appetite to trade outside the NBBO by adding a buffer

Can stipulate the buffer yourself, or rely on exchange defaults

Upon entry, complex orders will be capped at the buffer level

If capped orders are not traded in 2 seconds, they are cancelled back

Fat fingersExchange or member defined port setting for maximum order size

Intrinsic value

Debit strategies

Minimum price

Risk Protections I

Introducing the most holistic complex options solution around

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Quote Risk Management tracks risk threshold for resting orders

Complex trades will be included in the these calculations

Any trade (‘regular’ or complex) that triggers a risk control will result in all other orders getting removed

Complex order legging will be limited to prevent risk threshold. Not permitted:

Complex orders with greater than 4 legs;

Complex orders with 3 or 4 legs when all legs are buying or selling;

Complex orders with 2 legs where both legs are buying or selling unless that order is entered by a priority customer and goes through an auction.

Pegging

Match Trade PreventionSupported: Cancel Newest, Cancel Oldest, Cancel Both

Risk Protections II

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Planned dates*:

May 11: Technical specifications available

August 1: Certification available for testing

September 16: First optional weekend test

October 21: Second optional weekend test

October 23: Go live

Key resources:

Microsite: www.bats.com/COB

Summary

*Subject to regulatory approval

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Questions & Answers

CBOE Holdings 400 South LaSalle StreetChicago, Illinois 60605www.cboe.com