CHICAGO, Feb. 1, 2021 /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
beginning Monday, March 1, pending
regulatory approval.
New Mini-Russell 2000 Index options (ticker symbol: MRUT) are
designed to provide direct exposure to the Russell 2000 Index in a
more manageably sized and cost-effective contract. The mini options
will share the same contract terms as standard Russell 2000 Index
options (ticker symbol: RUT) but will be one-tenth the size of the
standard contract, making them comparable to ETF options that
similarly provide U.S. small-cap equity exposure. With a smaller
notional value, Mini-Russell 2000 Index options help to offer
investors potentially greater flexibility and precision when
managing U.S. small-cap equity market risk or allocating among
accounts.
The creation of the mini contract follows Cboe's success with
standard Russell 2000 options – one of the five most liquid
cash-settled equity index options listed in the U.S. – and will
provide investors with additional tools to execute their U.S.
small-cap equity trading strategies. With the launch of
Mini-Russell 2000 Index options, Cboe also continues to expand its
offerings of tradable index products that feature a mini contract,
including Mini Cboe Volatility Index futures (ticker symbol: VXM)
and Mini S&P 500 Index options (ticker symbol: XSP), designed
to appeal to a wide range of investors, including sophisticated
retail traders seeking to hedge or gain exposure to the broad U.S.
equity markets.
Arianne Criqui, Head of
Derivatives and Global Client Services at Cboe Global Markets,
said: "The Russell 2000 Index continues to be one of the most
widely followed U.S. small cap benchmarks, and we are pleased to
extend its utility to a broader universe of investors by offering
Mini-Russell 2000 Index options. Delivering the features of index
options trading in a more manageably sized and flexible vehicle,
Mini-Russell options could serve as an alternative to comparable
ETF options and a valuable tool for investors to potentially
increase yields and hedge risks efficiently."
Cboe expects the utility of Mini-Russell 2000 Index options to
help meet the investment needs of a wide base of market
participants, ranging from new index options traders and
sophisticated retail traders managing an individual portfolio, to
small- and mid-sized institutional investors seeking to execute
small-cap options-based strategies. Similar to standard Russell
options, Mini-Russell 2000 Index options will be structured as
European-style options (no early exercise) and cash-settled (no
unwanted delivery or assignment of shares) at expiration with P.M.
settlement.
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 options tracking the Russell 2000
Index were first offered at Cboe in 1992. In 2020, average daily
volumes for Russell 2000 Index options traded at Cboe were
approximately 34,000 contracts with total open interest standing at
over 600,000 contracts.
For additional information on Cboe's franchise of FTSE
Russell-based index options and the new Mini-Russell options, visit
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
Contact
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Angela
Tu
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Tim
Cave
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Debbie
Koopman
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+1-646-856-8734
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+44 (0)
7593-506-719
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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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dkoopman@cboe.com
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CBOE-OE
CBOE-O
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, VIX®,
XSP® 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. All other trademarks and service marks are the
property of their respective owners.
Cboe Global Markets, Inc. and its affiliates do not recommend
or make any representation as to possible benefits from any
securities, futures or investments, or third-party products or
services. Cboe Global Markets, Inc. is not affiliated with
Frank Russell Company or S&P. Investors
should undertake their own due diligence regarding their
securities, futures and investment practices. This press release
speaks only as of this date. Cboe disclaims any duty to update the
information herein.
Mini VIX™ futures are complicated financial products that are
suitable only for sophisticated market participants. Mini VIX
futures involve the risk of loss, which can be substantial and can
exceed the amount of money deposited for the futures
position. Market participants should put at risk only funds
that they can afford to lose without affecting their
lifestyles. Before transacting in Mini VIX futures, market
participants should fully inform themselves about the
characteristics and risks of Mini VIX futures, including in
particular those described here. Mini VIX futures market
participants also should make sure they understand the product
specifications and the methodologies for calculating the underlying
VIX® Index and the settlement values for Mini VIX
futures.
Nothing in this announcement should be considered a
solicitation to buy or an offer to sell any securities or futures
in any jurisdiction where the offer or solicitation would be
unlawful under the 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 or the S&P 500 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 of the S&P 500
indexes and shall not in any way be liable for any inaccuracies or
errors.
Cautionary Statements Regarding Forward-Looking
Information
Certain information contained in this
press release may constitute forward-looking statements. We caution
readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made and are subject to
a number of risks and uncertainties.
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SOURCE Cboe Global Markets, Inc.