- Cboe to list Tuesday and Thursday-expiries for Russell 2000
Index Weeklys® (RUTW) options and Mini-Russell 2000 Index
Weeklys (MRUT) options
- New listings will expand product suite to offer expirations
every trading day of the week
- Reflects growing investor demand for hedging and tactical
trading with short-dated index options
CHICAGO, Dec. 21,
2023 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe:
CBOE), the world's leading derivatives and securities exchange
network, today announced it plans to launch Tuesday and
Thursday-expiring Russell 2000® Index weekly (RUTW) options and
Mini-Russell 2000® Index weekly (MRUT) options, beginning
Monday, January 8, 2024. With these
new listings, Cboe expands its cash-settled Russell 2000 Index
weekly options suite to offer investors with expirations every
trading day of the week.
The Russell 2000 Index is one of the world's premier benchmarks
for measuring the performance of U.S. small-cap equities. The
addition of Tuesday and Thursday-expiries will provide daily
expirations for RUTW and MRUT options, enabling investors to
potentially manage their small-cap U.S. equity exposures and
execute targeted buying, selling or spreading strategies around
market events with greater precision, flexibility and control.
"Investors are becoming increasingly sophisticated and are using
short-dated index options for a variety of trading strategies,"
said Catherine Clay, Executive Vice
President and Global Head of Derivatives at Cboe. "As evidenced by
the sustained volume growth over the past couple of years,
short-dated index options have become an indispensable tool for
hedging, risk management, and income generation among a diverse
base of market participants. As trading strategies become more
tactical and average time to expiry trend shorter, our clients are
seeking even more granular expiries. We're excited to continue
collaborating with FTSE Russell to offer daily expiries for the
Russell 2000 Index options suite and expand our customers'
abilities to trade short-dated strategies across additional new
products."
Total U.S. options volumes are expected to hit a new annual high
by the end of 2023, surpassing the 10.3 billion contracts traded in
2022, and marking the fourth consecutive year of record-breaking
volumes. In particular, trading in short-dated U.S. index options
has grown among both retail and institutional investors. Options
contracts expiring within one day or less account for approximately
36% of total U.S. index options flow in 2023, compared to 15% in
2020, according to Cboe data. Within the Russell 2000 Index options
complex, trading in contracts expiring within a day or less
constitute 17% of overall volumes in 2023.
"FTSE Russell and Cboe share a deep commitment to delivering
innovative solutions that meet the evolving needs of the
marketplace," said Shawn Creighton,
Director of Index Derivatives Solutions at FTSE Russell. "We are
excited to continue building on our successful relationship and
leverage FTSE Russell's position as a leading global index provider
and Cboe's deep expertise in derivatives trading to facilitate more
tradeable products and investment opportunities tied to the Russell
2000 Index – the world's most comprehensive and precise measure of
the small-cap segment of the U.S. equities market."
RUTW and MRUT options are European-style options (no early
exercise) and cash-settled (no delivery or assignment of shares) at
expiration with P.M. settlement. MRUT options are structured like
standard RUTW options and similarly track the underlying Russell
2000 Index but feature a smaller contract that is 1/10th
the size. MRUT offers a potentially more cost-effective way to
execute small-cap equity trading strategies.
RUTW and MRUT options are exclusively listed on Cboe's options
exchanges. A total of 15.2 million RUT options contracts were
traded in 20231, with an average daily volume (ADV) of
63,000 contracts, representing approximately $11 billion in average daily notional value, up
39 percent from the prior year. The new Tuesday and
Thursday-expiries complement the existing suite of Weeklys,
end-of-month and quarterly RUTW and MRUT options.
For additional information on Cboe's franchise of FTSE
Russell-based index options, visit Cboe's website.
About Cboe Global Markets
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.
Cboe Media Contacts
|
|
Cboe 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
|
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khill@cboe.com
|
CBOE-OE
CBOE-O
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1 YTD through December 15,
2023
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