- Enables customers to trade Mini S&P 500 Index (XSP) options
nearly 24 hours, five days a week
- Adds to Cboe's existing offering of SPX options and VIX options
and futures during Global Trading Hours (GTH)
- Ability to harness the cash-settled, smaller-sized S&P 500
index options during GTH will help enable traders to adjust
positions around the clock with even greater precision and
flexibility
CHICAGO, Nov. 4, 2022
/PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), a leading
provider of global market infrastructure and tradable products,
today announced plans to launch trading in Mini S&P 500 Index
(XSP) options during global trading hours (GTH), which will make
the product available to customers nearly 24 hours every business
day on Cboe Options Exchange, beginning December 11, 2022.
The planned launch will add to Cboe's existing offering of its
flagship S&P 500 Index® (SPX) options and Cboe Volatility
Index® (VIX®) options and futures during the GTH session. With the
ability to trade all four products around the clock, market
participants globally will have even more product choice to manage
risk more efficiently, react to global macroeconomic events as they
are happening and adjust their positions, no matter the hour of the
day.
The offering of XSP options during GTH is Cboe's latest
enhancement to further broaden customer access to the XSP product
suite. In October, Cboe began listing XSP options with Tuesday and
Thursday weekly expiring contracts to provide expirations on
every business day of the week.
"Cboe's popular, cash-settled SPX options have long been the
index option of choice for market participants around the world
seeking to manage their U.S. equity exposure, hedge risk and
generate income," said Arianne
Adams, Senior Vice President, Head of Derivatives and Global
Client Services at Cboe Global Markets. "As demand for Cboe's
proprietary products continues to grow globally from both
institutional and retail customers, the ability to also trade XSP
options during GTH helps investors to harness the smaller-sized
contract to execute trading strategies with even greater precision
and flexibility on a nearly 24 hours-a-day, five days-a-week
basis."
In U.S. time, Cboe's GTH session begins at 8:15 p.m. ET and runs until 9:15 a.m. ET the following morning. Regular
trading hours (RTH) then run from the U.S. market open at
9:30 a.m. ET until the market close
at 4:15 p.m. ET. For each Monday
business day, trading in GTH begins Sunday evening at 8:15 p.m. ET. In addition, the RTH session is
followed by a curb session for SPX and VIX options – an extra
session for electronic trading to adjust, unwind, or close out
trades from 4:15 p.m. ET to 5:00 p.m.
ET, Monday through Friday.
Alongside SPX and VIX options, XSP options will trade during all
three sessions. Similar to SPX options, Cboe will offer both
standard monthly-expiring contracts and daily-expiring contracts
for XSP options during all sessions.
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 also offer potentially favorable tax
treatment1, European-style exercise (no early
exercise) and cash settlement (no delivery or assignment of shares)
at expiration.
SPX and XSP options are exclusively listed on Cboe Options
Exchange and are among the most actively traded index options
products in the world. Trading volumes have continued to hit
all-time highs, as a new monthly record of 60.8 million SPX options
contracts traded was set in October, up 88 percent from
October 2021, with average daily
volume (ADV) of 2.9 million contracts. More than 1.3 million XSP
options contracts were traded in October, up 255 percent from a
year ago, with ADV of 62,000 contracts.
For more information about Cboe's GTH session, please visit
https://go.cboe.com/24x5.
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
|
|
Analyst
Contact
|
Angela
Tu
|
Tim
Cave
|
|
Kenneth Hill,
CFA
|
+1-646-856-8734
|
+44 (0)
7593-506-719
|
|
+1-312-786-7559
|
atu@cboe.com
|
tcave@cboe.com
|
|
khill@cboe.com
|
CBOE-OE
CBOE-O
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and (VIX®)
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
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Exchange, Inc. Cboe Exchange's options on the S&P 500 Index,
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Cboe Global Markets, Inc. and its affiliates do not recommend or
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Investors should undertake their own due diligence regarding their
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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
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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
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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,
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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;
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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
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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
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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;
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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 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.