What Really Happens Inside Big Money Exchanges? | CXOTalk #885

CXOTalk

What does it take to keep global financial markets stable during extreme volatility and AI-driven trading? Chris Isaacson, Chief Operating Officer of Cboe Global Markets, the world's largest options market exchange, reveals the high-stakes playbook for building resilient systems, people, and processes that handle over a trillion messages a day without failure.

In CXOTalk episode 885, we go behind the scenes of one of the world's largest exchange operators to learn how they prepare for and manage market crises. Chris shares concrete strategies and the leadership mindset required to operate in an environment where nanoseconds and trillions of dollars are on the line.

Topics Discussed:

Building Holistic Resilience: The framework of "resilient people, processes, and platforms."

Preparing for Volatility: The "2X rule" for engineering systems to handle extreme scenarios.

Managing AI Risk: How to control AI-driven trading by focusing on effects, not intent.

Leadership Under Fire: The critical importance of composure and a codified cultural framework.

The Future of Trading: The operational realities of moving toward a 24/7 market.

Chris Isaacson is the Executive Vice President and Chief Operating Officer of Cboe Global Markets, one of the world's leading derivatives and securities exchange networks. He oversees all of Cboe's technology, operations, and risk management.

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🔷 Episode notes: https://www.cxotalk.com/episode/inside-the-worlds-largest-options-exchange-where-milliseconds-mean-millions

Video Chapters:

[00:00] Introduction to Cboe Global Markets and the Importance of Resilience

[01:04] Building Resilient Systems, Teams, and Processes

[10:01] Handling Market Volatility and Preparing for Extreme Scenarios

[13:15] Role of a COO in Maintaining Market Stability

[14:14] Lessons from Market Crises and Risk Management

[16:41] Generative AI and Risk Controls in Financial Markets

[19:33] Managing Risks in AI-Driven Trading

[23:53] The Evolution and Limits of Trading Speeds

[27:52] Leadership During Market Turbulence

[29:53] Exploring 24/5 and 24/7 Trading in Financial Markets

[35:35] Leadership and Building a Global Team Culture

[37:42] Navigating Market Volatility and Personal Reflections

[40:25] Efficiency and the Role of Data in Financial Markets

[43:02] Managing Risk and Educating Investors in Derivatives Trading

[49:00] Future of Markets: Cross-Asset Trading, Digital Assets, and AI