CHICAGO, Dec. 17, 2020 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a market operator and global trading
solutions provider, today announced plans to launch trading in
Mini-Russell 2000® Index options on Cboe Options Exchange in
the first quarter of 2021, subject to regulatory review.
With the planned addition of new mini options on the Russell
2000 Index, Cboe continues to expand its offerings of
smaller-sized, tradable index products that help enable market
participants to gain more efficient and cost-effective exposure to
the broad U.S. equity market. The planned launch also underscores
Cboe's longstanding relationship with FTSE Russell, building upon
its successful franchise of index-based, cash-settled options tied
to the FTSE Russell global indices.
New Mini-Russell 2000 Index options (ticker symbol: MRUT), which
are subject to regulatory review, will be structured like standard
Russell 2000 Index options, but will feature a smaller contract
that is one-tenth the size of the standard contract, making them
the same size as comparable ETF options. The smaller notional value
of the mini contract is designed to provide market participants
with a more precise way to hedge or gain direct exposure to the
Russell 2000 Index. The more manageably sized, P.M.-settled
contract is expected to appeal to a diverse range of participants,
including sophisticated retail traders and small- or mid-sized
institutional investors seeking greater flexibility when managing
U.S. small-cap equity market risk and volatility or allocating
among accounts.
Arianne Criqui, Head of
Derivatives and Global Client Services at Cboe Global Markets,
said: "Based on the strong customer interest and growing demand we
are seeing for smaller-sized derivatives contracts, we are pleased
to offer mini options on the Russell 2000 Index, making a valuable
trading tool more readily available for both large and small market
participants. With a growing suite of mini products designed to
meet the needs of a new generation of investors, Cboe continues to
lead the industry and drive forward the next wave of innovation in
options trading."
Waqas Samad, Group Director of
Information Services at London Stock Exchange Group and CEO of
global index provider FTSE Russell, said: "We are excited to
continue to build on our collaboration with Cboe Global Markets to
extend investor reach and access to derivative tools based on the
Russell 2000 Index, the index of choice for U.S. small-cap
investors. This enhanced access to U.S. small-cap stocks for global
investors is incredibly timely given the current state of the
global economic recovery and the recent history-making performance
of this important asset class."
Similar to the standard Russell options, Mini-Russell options
will be structured as European-style options (no early exercise)
and cash-settled at expiration. Cboe expects the launch of
Mini-Russell options to potentially facilitate overall investor
participation in the market for Russell 2000 options, which should,
in turn, help to further enhance the depth and liquidity of the
market to the benefit of investors.
The Russell 2000 Index is the world's premier benchmark
measuring the performance of the small-cap segment of the U.S.
stock market. Standard monthly Russell options were first offered
at Cboe in 1992 and continue to be one of the five most liquid
cash-settled equity index options listed in the U.S. For the year
to date1, average daily volumes for Russell 2000 Index
options traded at Cboe were approximately 34,000 contracts with
total open interest standing at over 822,000 contracts.
For additional information on Cboe's new Mini-Russell options
and its broader franchise of FTSE Russell-based index options,
visit https://www.cboe.com/mrut.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) provides cutting-edge trading
and investment solutions to market participants around the world.
The company is committed to defining markets through product
innovation, leading edge technology and seamless trading
solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S., Canadian and European equities, exchange-traded products
(ETPs), global foreign exchange (FX) and volatility products based
on the Cboe Volatility Index® (VIX® Index), recognized as
the world's premier gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe, and owns EuroCCP, a
leading pan-European equities clearing house. Cboe also is a
leading market globally for ETP listings and
trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Media
Contacts
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Analyst
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Tim
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Debbie
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+1-646-856-8734
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+44 (0)
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+1-312-786-7136
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atu@cboe.com
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tcave@cboe.com
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CBOE-OE
CBOE-O
Cboe® Cboe Volatility Index®, VIX®, and Cboe Global Markets®
are registered trademarks of Cboe Exchange, Inc. All other
trademarks and service marks are the property of their respective
owners. Russell and Russell 2000® are registered trademarks
of the Frank Russell Company, used under license.
Cboe Global Markets, Inc. and its affiliates do not recommend
or make any representation as to possible benefits from any
securities or investments, or third-party products or services.
Investors should undertake their own due diligence regarding their
securities and investment practices. This press release speaks only
as of this date. Cboe disclaims any duty to update the information
herein.
Nothing in this announcement should be considered a
solicitation to buy or an offer to sell any securities in any
jurisdiction where the offer or solicitation would be unlawful
under the securities laws of such jurisdiction. Nothing
contained in this communication constitutes tax, legal or
investment advice. Investors must consult their tax adviser or
legal counsel for advice and information concerning their
particular situation.
Cboe Global Markets, Inc. and its affiliates, to the maximum
extent permitted by applicable law, make no warranty, expressed or
implied, including, without limitation, any warranties as of
merchantability, fitness for a particular purpose, accuracy,
completeness or timeliness, the results to be obtained by
recipients of the products and services described herein, or as to
the ability of the FTSE Russell indexes to track the performance of
the general market or any segment thereof, and shall not in any way
be liable for any inaccuracies or errors. Cboe Global Markets, Inc.
and its affiliates have not calculated, composed or determined the
constituents or weightings of the securities that comprise the FTSE
Russell indexes and shall not in any way be liable for any
inaccuracies or errors.
1 Through December 16,
2020
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SOURCE Cboe Global Markets, Inc.