CHICAGO, Jan. 25, 2022 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, today announced that Webull
Financial LLC, a leading retail brokerage platform with a growing
global presence, will offer Cboe's new Nanos S&P 500 Index
options at launch on its trading platform in first-quarter 2022.
The product will be available to customers who are approved to
trade options on Webull's platform. This initiative underscores
each of Cboe's and Webull's ongoing commitment to serve the retail
trading community by providing them with access to new options
products, data and educational resources to help them learn about
options trading.
Additionally, Webull recently began offering Cboe's popular
S&P 500 Index (SPX) options, Cboe Volatility Index (VIX)
options and Mini-S&P 500 Index (XSP) options on its platform,
giving its retail customers access to cash-settled index options
trading. With the planned addition of the new Nanos S&P 500
Index options (ticker: NANOS) – a first of its kind, smaller and
simpler options contract – Webull will provide retail traders on
its platform with additional choice on what they can trade,
tailored to their account size, experience levels and investment
objectives.
"We are pleased Webull is bringing Cboe's product offerings to
its trading platform and introducing the utility of index options
to its retail traders," said Ed
Tilly, Chairman, President and Chief Executive Officer of
Cboe Global Markets. "Webull shares our deep commitment to
empowering retail investors through delivering education, product
innovation and broadened access to the markets, so that a greater
universe of traders can learn about the potential benefits options
provide."
SPX and VIX options help allow investors to hedge or gain
exposure to the broad U.S. market and global equity market
volatility, and help execute risk management, hedging, asset
allocation and potential income generation strategies. The new
and smaller-sized Nanos SPX options are 1/100th the size
of an XSP option, the Mini-S&P 500 Index (which is
1/10th the value of the S&P 500 Index) options
contract, and designed to make trading more accessible for retail
traders. With a one-multiplier, Nanos aim to make options trading
simpler and more cost-effective compared to standard-sized options,
allowing retail traders to start small, learn as they go and grow
their trading confidence.
As part of this initiative, Webull will also offer all
registered members a free subscription to CSMI (Cboe Streaming
Market Indices) powered by Cboe, providing real-time SPX, XSP, and
VIX index values that allow customers to track option market
changes.
"We are excited to collaborate with Cboe to educate our
customers on the usability and benefits of index options," said
Anthony Denier, Chief Executive
Officer of Webull Financial LLC. "Through this partnership, our
customers can now trade Cboe's proprietary index options products
for the first time. Additionally, Webull customers will be among
the first traders to be able to access Cboe's new Nanos product as
we are focused on empowering the individual trader with new
opportunities and lower costs."
Index options are European-style (cannot be exercised before
expiration), and cash-settled (no delivery or assignment of
underlying shares) so trader accounts are credited/debited in cash.
Index options can also help investors diversify a portfolio and
gain broad market exposure and typically offer lower volatility
than options on single stocks.
Listed options are a time-tested and valuable investment tool that
allow market participants to gain market exposure and manage their
risk, however, it is important that new investors understand how to
use options products and the potential risks1. To
complement the offering of Cboe's index options products, Cboe and
Webull plan to work together to provide educational resources and
tools to help retail investors better understand the
characteristics of this product type and build the knowledge they
need to trade with confidence.
In addition, Webull earlier this year began providing
connectivity to Cboe's U.S. equities markets. Significantly,
through the early trading session offered on Cboe's EDGX Equities
Exchange, Webull's customers are able to access even more of the
U.S. equities market around the clock, starting as early as
4:00 a.m. ET, Monday through
Friday.
To learn about Cboe's proprietary index options products, visit
www.cboe.com/tradable_products. For information on Nanos by Cboe,
visit www.cboe.com/nanos. To learn about Cboe's collaboration with
Webull, visit www.webull.com/cboe.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The company is committed to operating a trusted,
inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities, derivatives
and FX, across North America,
Europe and Asia Pacific. To learn more, visit
www.cboe.com.
About Webull Financial
Webull Financial LLC is a broker-dealer registered with the
Securities and Exchange Commission (SEC) and is a member of the
Financial Industry Regulatory Authority (FINRA) and the Securities
Investor Protection Corporation (SIPC). The headquarters of Webull
Financial LLC is located at 44 Wall Street, New York, NY, USA. To learn more, visit:
www.webull.com. For information on options trading on Webull,
visit: https://www.webull.com/options.
Media
Contacts
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Analyst
Contact
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Angela Tu
(Cboe)
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Catherine Toor
(Webull)
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Kenneth Hill, CFA
(Cboe)
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+1-646-856-8734
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ctoor@5wpr.com
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1-312-786-7559
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atu@cboe.com
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khill@cboe.com
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CBOE-O
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, FLEX®,
VIX®, ®, and XSP® are registered trademarks and NanosSM,
nanos by CboeSM, Cboe NanoSM, Nano
OptionsSM, Options InstituteSM are service
marks of Cboe Exchange, Inc. or its affiliates. The S&P 500
Index is proprietary to S&P Dow Jones Indices LLC.
S&P®, S&P 500® and SPX® are registered trademarks of
Standard & Poor's Financial Services, LLC and have been
licensed for use with the S&P 500 Index by Cboe Exchange, Inc.
Cboe Exchange's options on the S&P 500 Index are not sponsored,
endorsed, marketed or promoted by S&P Dow Jones Indices and
S&P Dow Jones Indices does not have any liability with respect
thereto. All other trademarks and service marks are the
property of their respective owners. © 2021 Cboe Exchange, Inc. All
rights reserved.
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.
Options involve risk and are not suitable for all investors.
Prior to buying or selling an option, a person must receive a copy
of Characteristics and Risks of Standardized Options (ODD). Copies
of the ODD are available from your broker or from The Options
Clearing Corporation, 125 S. Franklin
Street, Suite 1200, Chicago,
IL 60606 (investorservices@theocc.com). The information in
this document is provided for general education and information
purposes only. No statement(s) within this document should be
construed as a recommendation to buy or sell a security, or to
provide investment advice. Supporting documentation for any claims,
comparisons, statistics or other technical data in this document is
available by contacting Cboe Global Markets at
www.cboe.com/contact. Past performance is not predictive of future
returns.
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
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that involve a number of
risks and uncertainties. You can identify these statements by
forward-looking words such as "may," "might," "should," "expect,"
"plan," "anticipate," "believe," "estimate," "predict," "potential"
or "continue," and the negative of these terms and other comparable
terminology. All statements that reflect our expectations,
assumptions or projections about the future other than statements
of historical fact are forward-looking statements. These
forward-looking statements, which are subject to known and unknown
risks, uncertainties and assumptions about us, may include
projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements
are only predictions based on our current expectations and
projections about future events. There are important factors that
could cause our actual results, level of activity, performance or
achievements to differ materially from those expressed or implied
by the forward-looking statements.
We operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible to predict all risks and uncertainties, nor
can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements.
Some factors that could cause actual results to differ
include: the impact of the novel coronavirus ("COVID-19") pandemic,
including changes to trading behavior broadly in the market; the
loss of our right to exclusively list and trade certain index
options and futures products; economic, political and market
conditions; compliance with legal and regulatory obligations; price
competition and consolidation in our industry; decreases in trading
or clearing volumes, market data fees or a shift in the mix of
products traded on our exchanges; legislative or regulatory
changes; our ability to protect our systems and communication
networks from security risks, cybersecurity risks, insider threats
and unauthorized disclosure of confidential information; increasing
competition by foreign and domestic entities; our dependence on and
exposure to risk from third parties; fluctuations to currency
exchange rates; our index providers' ability to maintain the
quality and integrity of their indices and to perform under our
agreements; our ability to operate our business without violating
the intellectual property rights of others and the costs associated
with protecting our intellectual property rights; our ability to
attract and retain skilled management and other personnel; our
ability to minimize the risks, including our credit and default
risks, associated with operating a European clearinghouse; our
ability to accommodate trading and clearing volume and transaction
traffic, including significant increases, without failure or
degradation of performance of our systems; misconduct by those who
use our markets or our products or for whom we clear transactions;
challenges to our use of open source software code; our ability to
meet our compliance obligations, including managing potential
conflicts between our regulatory responsibilities and our
for-profit status; our ability to maintain BIDS Trading as an
independently managed and operated trading venue, separate from and
not integrated with our registered national securities exchanges;
damage to our reputation; the ability of our compliance and risk
management methods to effectively monitor and manage our risks; our
ability to manage our growth and strategic acquisitions or
alliances effectively; restrictions imposed by our debt obligations
and our ability to make payments on or refinance our debt
obligations; our ability to maintain an investment grade credit
rating; impairment of our goodwill, long-lived assets, investments
or intangible assets; and the accuracy of our estimates and
expectations. More detailed information about factors that may
affect our actual results to differ may be found in our filings
with the SEC, including in our Annual Report on Form 10-K for the
year ended December 31, 2020 and
other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to
update any forward-looking statement whether as a result of new
information, future events or otherwise, except as required by law.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
1 While capital risk for a Nanos contract holder is
limited to the price of the premium and is thus reduced relative to
the same number of standard contracts, the capital risk associated
with writing Nanos by Cboe contracts remains open-ended. In
addition to the premium price, a contract holder may also need to
pay applicable fees and commissions.
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SOURCE Cboe Global Markets, Inc.