- Reflects strong customer demand for short-dated, cash-settled,
European-exercised S&P 500 Index® (SPX) options
- Additional expirations for SPX Tuesday and Thursday options
build on success of recent launch
- Mini-S&P 500® Index options to be offered with expirations
each weekday, similar to SPX options
CHICAGO, Sept. 19,
2022 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe:
CBOE), a leading provider of global market infrastructure and
tradable products, today announced the continued expansion of its
S&P 500 Index® (SPX) options suite with additional expirations
for SPX WeeklysSM Tuesday and Thursday options,
beginning September 19 and
September 28, respectively.
Total volume in SPX Tuesday and Thursday options have surpassed
44 million contracts[1] since their launch in second-quarter 2022,
reflecting strong customer interest and trading activity. The
additional expirations for SPX Tuesday and Thursday options will
align with the number of expirations currently available for SPX
Monday and Wednesday options, and meet growing customer demand for
Cboe's SPX offerings.
In addition, Cboe will introduce new Tuesday and
Thursday-expiring Mini-S&P 500® Index (XSP) options beginning
October 3 and October 12, respectively. With these changes,
both SPX and XSP options will offer expirations every day, going
out at least four weeks, enabling traders to express their views
with even greater precision.
"Cboe's proprietary Weeklys contracts are one of our fastest
growing products and with these new listings, we are continuing to
build out our world-class S&P 500 options franchise to bring
even more product choice and versatility to suit our global
customers' diverse trading needs," said Arianne Adams, Senior Vice President and Head of
Derivatives and Global Client Services at Cboe Global Markets. "As
ultra-short-dated SPX options trading activity hit record levels,
these new expirations meet strong retail and institutional client
demand for cash-settled options to spread risk across more trading
days and manage intraday volatility in the markets with even
greater agility and efficiency."
At 1/10th the size of a standard SPX options
contract, XSP options provide a more manageably sized contract and
greater flexibility for new index options traders or traders
looking to manage their notional exposure with greater precision.
Like SPX options, XSP options offer the potential opportunity to
manage large-cap U.S. equity exposure including, but not limited
to, the execution of overall risk management and income generation
strategies.
SPX and XSP options also offer potentially favorable tax
treatment[2], European-style exercise (no early exercise) and cash
settlement (no delivery or assignment of shares) at expiration.
SPX options are one of the most actively traded and liquid index
options contracts in the world. Trading volumes have grown, as a
new monthly record of 51.4 million contracts traded was set in
August, up 82 percent from August
2021, with average daily volume (ADV) of 2.2 million
contracts. Similarly, XSP options continued to gain steady
adoption. Approximately 657,000 XSP options contracts were
traded in August, up 115 percent from a year ago, with ADV of
nearly 29,000 contracts.
To learn more about Cboe's XSP and SPX options, please visit the
website.
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, FX and digital assets, across North America, Europe and Asia
Pacific. To learn more, visit www.cboe.com.
Media
Contacts
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Analyst
Contact
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Tim
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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®, and WeeklysSM are
registered trademarks of Cboe Exchange, Inc. The S&P 500 Index
is proprietary to S&P Dow Jones Indices LLC.
S&P®, S&P 500®, XSP®, S&P 100®, SPX®, SPY®, Select
Sector®, The 500 and US500 are trademarks of Standard & Poor's
Financial Services, LLC and have been licensed for use by Cboe
Exchange, Inc. Cboe Exchange's options on the S&P 500 Index,
S&P 500 ESG Index, Select Sector Indices, 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. © 2022 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 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; our ability to attract and retain skilled
management and other personnel; 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; the impact of
the novel coronavirus ("COVID-19") pandemic; 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 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; the
accuracy of our estimates and expectations; litigation risks and
other liabilities; and operating a digital asset business and
clearinghouse, including the expected benefits of our ErisX
acquisition, cybercrime, changes in digital asset regulation,
losses due to digital asset custody, and fluctuations in digital
asset prices. 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, 2021 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 Ending August 30,
2022.
2 Under section 1256 of the Tax Code, profit and
loss on transactions in certain exchange-traded options, including
XSP, are entitled to be taxed at a rate equal to 60% long-term and
40% short-term capital gain or loss, provided that the investor
involved and the strategy employed satisfy the criteria of the Tax
Code. Investors should consult with their tax advisors to determine
how the profit and loss on any particular option strategy will be
taxed. Tax laws and regulations change from time to time and may be
subject to varying interpretations.
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SOURCE Cboe Global Markets, Inc.