CHICAGO, Oct. 27, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, today announced it plans to
list additional LEAPS® (Long-Term Equity AnticiPation Securities)
options on the S&P 500 Index (SPX) that offer expiration dates
in December 2024, December 2025 and December
2026, respectively, on Cboe Option Exchange, beginning
November 1, 2021.
Designed for market participants looking to invest for a longer
time-horizon, LEAPS options have the same characteristics as
standard options, but with extended expiration dates of several
years into the future. LEAPS options aim to provide market
participants with effective and efficient tools to trade, manage
risk or gain exposure to the broad market for a much longer time
frame than standard options with monthly expirations.
With the additional listings, Cboe continues to broaden
accessibility and provide ease of use to its index options products
in the listed market, while further expanding its customer base.
Significantly, the offerings will provide institutional investors
who are currently trading SPX options only in the over-the-counter
(OTC) market, with solutions to trade SPX options in a regulated
and transparent marketplace that offers price
discovery, central clearing and liquidity.
"We are seeing growing interest from asset managers,
insurance companies and pensions globally to trade longer-dated SPX
options on-exchange, and are pleased to meet increased customer
demand with these additional listings," said Arianne Criqui, Senior Vice President, Head of
Derivatives and Global Client Services. "Many institutional
investors have been longtime users of LEAPS options, and as their
assets under management continue to grow, we expect these listed
options will become an increasingly important hedging tool for
investors seeking to manage risk."
In addition, Cboe has secured support from Optiver, a leading
global market maker, who is expected to help contribute to the
provision of liquidity and client order flow to these options when
they launch.
"With the listing of three-, four- and five-year SPX options on
Cboe, market participants will have the opportunity to access
longer-dated derivatives strategies in the world's most active
index on-exchange," said Leaf Wade, Institutional Trading Lead at
Optiver. "We're proud to collaborate with Cboe on the launch of
these listings, an important step in the move from over-the-counter
trading to the listed and centrally-cleared space. As launch market
maker – and a leading market maker globally in listed SPX options –
we look forward to offering investors more efficient derivatives
capability."
Exchange-traded options offer investors robust price discovery,
price improvement and displayed liquidity. Market participants also
benefit generally from exchange transactions over OTC transactions
due to trade reporting and exchange surveillance of trading.
Further, exchange-traded options are also centrally cleared, which
eliminates counterparty risk and limits systemic risks associated
with non-centrally cleared OTC derivatives.
SPX options are exclusively listed on Cboe Options Exchange and
are among the most actively traded index options products in the
world. SPX options are designed to help investors gain efficient
exposure to the U.S. equity market and execute risk management,
hedging, asset allocation and income generation strategies. For
more information on Cboe's SPX LEAPS options, 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
and FX, 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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Angela
Tu
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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-O
CBOE-OE
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX®
are registered trademarks and LEAPS® is a service mark of
Cboe Exchange, Inc. Standard & Poor's®, S&P®, S&P 500®,
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forward-looking statements within the meaning of the Private
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SOURCE Cboe Global Markets, Inc.