CHICAGO, Feb. 2, 2022 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, today announced it plans to
launch trading in Nanos by Cboe beginning Monday, March 14, subject to regulatory
approvals. At a fraction of the size of a standard options
contract, Nanos is a first of its kind, one-multiplier,
cash-settled listed options contract that will help provide greater
access to options trading. The new contracts will be listed
exclusively on the Cboe Options Exchange.
Nanos will be available to trade based on the value of the
S&P 500 Index1, providing investors with a simple
and cost-effective way to gain broad exposure to the U.S. equity
market and execute hedging, asset allocation and income generation
strategies.
"Cboe's investment in Nanos is specifically designed to meet the
needs of today's growing retail trading community," said
Ed Tilly, Chairman, President and
CEO of Cboe Global Markets. "Our goal is to broaden
accessibility to options, empower new market participants with
education, and enable them to better express their opinions on
market movements. Nanos are the first option of its kind that we
believe will provide a new and simpler way to begin trading
options, allowing investors that are new to options trading to
start small and learn the potential benefits that index options can
provide."
With a smaller multiplier than standard options contracts, Nanos
S&P 500 options (ticker: NANOS) allow traders to express their
opinions on market movements at a lower cost than options with
larger contract sizes and thus higher notional values. The product
is expected to result in an average premium price of approximately
$5 per contract (excluding applicable
transaction fees and broker commissions), lowering the financial
barrier to entry for many investors. In addition, at
1/100th the size of the Mini-S&P 500 Index options
(XSP) contract, Nanos are designed to help traders more easily
identify and size trades, providing them with greater precision
when hedging or taking a directional position.
Nanos will be available to investors who are approved by their
retail brokerages to trade options. To complement the launch of
Nanos, the Cboe Options Institute plans to offer a new options
introductory curriculum tailored to retail traders. In addition,
Cboe expects to work with retail brokerages to provide additional
educational resources and tools to help investors better understand
the characteristics of options and build the knowledge they need to
trade with confidence.
"Interactive Brokers is committed to offering a wide range of
products at a low cost that address our clients' evolving needs,"
said Steve Sanders, Executive Vice
President of Marketing and Product Development at Interactive
Brokers. "We are pleased to now offer Nanos, which will provide
active traders with cost-effective trading opportunities and
expanded access to the options market. We look forward to
continuing our existing relationship with Cboe to provide more
innovative solutions and educational resources to benefit our
clients."
"TradeStation is pleased to be day one supporters of Nanos,
which we believe will lower the barrier of entry to options trading
for many investors," said John
Bartleman, President and CEO of TradeStation Group, Inc. "As
interest in options trading continues to grow, we believe Nanos
will appeal to all types of traders, including those who are new to
this asset class and seeking to build their knowledge and
experience with options."
"Tradier is excited to collaborate with Cboe to expand access to
options trading for more investors," said Kevin Luthringshausen, Senior Vice President of
Business Development at Tradier. "We remain committed to serving
the growing retail trading community and believe Nanos will empower
these investors in ways like never before, offering them a new and
innovative way to begin trading options and execute hedging and
income generation strategies."
"Webull's clients are at the core of our business, and we are
pleased to offer Nanos so that a greater universe of investors can
learn about the usability and benefits that options can provide,"
said Brendan Fuller, Managing
Director, Financial Risk at Webull Financial LLC. "Designed to make
options accessible for all, Nanos empowers investors with lower
costs and new trading opportunities, regardless of account size. We
are pleased to collaborate with Cboe to expand our educational
offerings and help investors learn the utility of options
trading."
"As many retail investors continue to grow their knowledge base
and investment portfolios, index options can be a valuable tool to
help protect or enhance their investments in a variety of market
conditions," said Rob Hocking,
Senior Vice President and Head of Derivatives Strategy at Cboe
Global Markets. "We believe investors' access to options, like any
other securities, must be appropriately supported with investor
education, and Cboe is committed to offering best-in-class
educational resources to help new traders learn about this new
product and the prudent use of options."
Listed options are a time-tested and valuable investment tool
that allow market participants to gain market exposure and manage
their portfolio risk, however, it is important that new investors
understand how to use options products and the potential
risks2.
Nanos S&P 500 will be cash-settled (meaning traders don't
have to worry about buying or selling the underlying asset at
expiration) and European-style (which have no early exercise
option) with P.M.-settlement. To learn more about Nanos by Cboe,
visit www.cboe.com/nanos. For information about Cboe's proprietary
index options products, visit www.cboe.com/tradable_products.
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.
Media
Contacts
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Analyst
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Angela
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Tim
Cave
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Kenneth Hill,
CFA
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+1-646-856-8734
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+44 (0)
7593-506-719
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1-312-786-7559
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atu@cboe.com
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tcave@cboe.com
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khill@cboe.com
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CBOE-OE
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
or changes in tax regimes; 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; factors that
impact the quality and integrity of our indices; 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 Nanos trade on Cboe as a one-multiplier (i.e.,
micro) option (with 1/100th the value of a standard option) on the
Mini-S&P 500 Index (equivalent in value to the Nano-S&P 500
Index), which is 1/10th the value of the S&P 500 Index.
2 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." Copies are available from your broker or from The Options
Clearing Corporation at 125 South Franklin Street, Suite 1200,
Chicago, IL 60606 or at
www.theocc.com.
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SOURCE Cboe Global Markets, Inc.