CHICAGO, Feb. 16, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a market operator and global trading
solutions provider, today announced plans to enable its
electronic auction mechanism to further serve market participants
trading S&P 500® Index options (SPX) and S&P 500 Index
WeeklysSM options (SPXW) on Cboe Options Exchange,
beginning Monday, February 22.
Striving to meet the growing demand from sophisticated
retail investors seeking to trade smaller-sized orders, Cboe plans
to activate its electronic crossing auction functionality, AIM
(Automated Improvement Mechanism), for SPX and SPXW options during
regular trading hours for trades up to a maximum size of 10
contracts. Cboe's AIM auctions are currently enabled for trading in
various other options classes and can be particularly valuable in
providing participants with access to negotiated liquidity that is
generally available in open-outcry trading. The auctions are
expected to offer additional opportunities for price improvement
throughout the trading day, leading to an opportunity for enhanced
execution quality.
Arianne Criqui, Senior Vice
President and Head of Derivatives and Global Client Services at
Cboe Global Markets, said: "The momentum of the retail investor is
real, and we are pleased to further expand our SPX functionality to
help meet this growing demand. On average, order sizes in the
options industry are trending smaller, and enabling AIM for small
orders in our SPX products, much like offering a mini SPX options
(XSP) contract at 1/10th the size, will afford
institutions and sophisticated retail investors with enhanced
functionality and flexibility to execute their SPX trades. We
expect that AIM will add another powerful electronic solution that
is complementary to our open-outcry trading and help contribute to
an even deeper and more liquid SPX options market."
Cboe Options Exchange, a hybrid trading model that incorporates
open-outcry and electronic trading features, currently offers AIM
as an electronic crossing auction for market participants to
execute orders, in addition to crossing executions that occur on
the trading floor. AIM auctions are designed to allow participants
to broadcast their orders on the Exchange for price improvement
opportunities over the current market price, and to trade their
orders against specified contra parties or other participants
responding to the auction – thereby potentially enhancing execution
rates and quality. The AIM functionality is also currently
available for SPX options trading in Cboe's global trading hours
session.
The S&P 500 Index is recognized worldwide as one of the
premier benchmarks for the U.S. stock market's performance. Cboe
offers a diverse range of SPX options products that provide
investors with the tools to gain efficient exposure to the U.S.
equity market and execute risk management, hedging, asset
allocation and income generation strategies. Listed exclusively on
Cboe Options Exchange, SPX options are among the most actively
traded cash-settled equity index options listed in the U.S. For
2020, total volume for all SPX options was more than 312.9 million
contracts, with average daily volume of approximately 1.2 million
contracts. For more information on Cboe's suite SPX options
products, visit the website.
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
|
Analyst
Contact
|
|
|
Angela Tu
|
Tim
Cave
|
Debbie
Koopman
|
+1-646-856-8734
|
+44 (0)
7593-506-719
|
+1-312-786-7136
|
atu@cboe.com
|
tcave@cboe.com
|
dkoopman@cboe.com
|
CBOE-OE
CBOE-O
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX®
are registered trademarks and WeeklysSM is a service
mark of Cboe Exchange, Inc. Standard & Poor's®, S&P®,
S&P 500®, and SPX® are registered trademarks of Standard &
Poor's Financial Services, LLC, and have been licensed for use by
Cboe Exchange, Inc. 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
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.
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 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
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.