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

Jul 11, 2025

Chris Isaacson, Executive Vice President and COO of Cboe Global Markets, shares insights into maintaining stability in global financial markets. He discusses the importance of building organizational resilience amidst extreme volatility and AI-driven trading. Chris emphasizes the '2X rule' for preparing systems for dramatic scenarios and the need to focus on the effects of AI rather than its intent. He highlights leadership's role under pressure and the future of trading in a 24/7 market environment. The conversation is a fascinating look into the complexities of market operations.

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INSIGHT

Holistic Resilience in Exchanges

Resilience in financial exchanges is holistic, relying on resilient people, processes, and platforms.
Platforms alone are not enough; human rigor in incident and change management ensures seamless operation.

ADVICE

Managing Real-Time Market Operations

Adopt rigorous communication and systematic playbooks to manage mission-critical, real-time trading operations.
Rapid response and precise system observability prevent downtime in high-speed markets.

ANECDOTE

Resilience from Farm and Sports

Chris Isaacson relates resilience to his upbringing on a farm and experience as a decathlete: focus and calmness matter across events.
He values humility, hunger, and intelligence when hiring people who can stay calm during market turbulence.

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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