CBOE Holdings Announces Plans to Launch Options on S&P Select Sector Indices

CBOE Holdings Announces Plans to Launch Options on S&P Select Sector Indices

PR Newswire

LONDON, Sept. 12, 2017

- Options will be available on 10 sectors that comprise the S&P 500®, pending regulatory approval

- Expected to hold particular market appeal for European investors interested in targeted exposure within key U.S. equity benchmarks

- Further expands CBOE's successful suite of products tied to S&P Dow Jones Indices, with trading and settlement features similar to CBOE's S&P 500 options (SPX)

LONDON, Sept. 12, 2017 /PRNewswire/ -- CBOE Holdings, Inc. (BATS: CBOE | NASDAQ: CBOE) announces plans to expand its suite of product offerings tied to S&P Dow Jones Indices with the planned launch of options on the 10 S&P Select Sector Indices that comprise the S&P 500®, a key benchmark of the U.S. equities market.  The new index options will offer investors across the globe new ways to efficiently incorporate U.S. sector investing strategies into their portfolios.

CBOE Holdings, Inc. logo.

CBOE Select Sector Index options are designed to provide simple, straightforward market exposure to widely followed U.S. equity sectors represented in the S&P 500. In particular, European investors who cannot currently hold options on exchange-traded funds (ETFs) due to obstacles presented by certain European regulations will be able to implement sector-investment strategies popular with U.S. investors. The new options offer all investors the benefits of cash settlement, with third-Friday (monthly) expirations and European-style exercise, similar to CBOE's S&P 500 options.

Pending regulatory approval, the options are expected to be exclusively listed on Chicago Board Options Exchange, the largest of CBOE Holdings' four options exchanges, and are expected to launch in late fourth-quarter 2017 or early 2018.

CBOE Holdings President and Chief Operating Officer Chris Concannon made the announcement regarding the new options today during his remarks to attendees of the 6th annual CBOE Risk Management Conference (RMC) Europe, currently taking place near London. 

"We are excited that we will be able to provide exposure to these key U.S. sector indices for European customers who have been keen to incorporate U.S. sector investing strategies into their portfolios, but have not had access to an efficient trading vehicle to realize this strategy," Mr. Concannon said.

"We also are happy to extend our partnership with S&P Dow Jones Indices with these products," he added. "CBOE Select Sector Index options will offer European asset managers and investors the targeted exposure to U.S. equity sectors they have been missing, and also give U.S. asset managers a new avenue for options investment."

All components of the S&P 500 are assigned to at least one of the following 10 S&P Select Sector Indices. The new CBOE Select Sector Index options will be available on each of these benchmark indices:

Index Name

Index
Ticker

Trading
Symbol

S&P Financial Select Sector Index

IXM

SIXM

S&P Energy Select Sector Index

IXE

SIXE

S&P Technology Select Sector Index

IXT

SIXT

S&P Health Care Select Sector Index

IXV

SIXV

S&P Utilities Select Sector Index

IXU

SIXU

S&P Consumer Staples Select Sector Index

IXR

SIXR

S&P Industrials Select Sector Index

IXI

SIXI

S&P Consumer Discretionary Select Sector Index

IXY

SIXY

S&P Materials Select Sector Index

IXB

SIXB

S&P Real Estate Select Sector Index

IXRE

SIXRE

"For more than 60 years, the S&P 500 has been regarded as the premier barometer of the U.S. stock market," said Reid Steadman, Managing Director and Head of Product Management at S&P Dow Jones Indices. "The increasing interest in index-based concepts and sector strategies is an example of market participants' strong demand for transparent and efficient exposure to all asset classes.  We are pleased to see CBOE list these 10 index options exclusively."

For additional information, visit www.cboe.com/Sectors.   

About CBOE Holdings, Inc.

CBOE Holdings, Inc. (BATS: CBOE | NASDAQ: CBOE), owner of the Chicago Board Options Exchange, the Bats exchanges, CBOE Futures Exchange (CFE) and other subsidiaries, is one of the world's largest exchange holding companies and a leader in providing global investors cutting-edge trading and investment solutions. 

The company offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), and multi-asset volatility and global foreign exchange (FX) products.  CBOE Holdings' 14 trading venues include the largest options exchange in the U.S. and the largest stock exchange in Europe, and the company is the second-largest stock exchange operator in the U.S. and a leading market globally for ETP trading.  

CBOE Holdings is home to the CBOE Volatility Index (VIX® Index), the world's barometer for equity market volatility; the CBOE Options Institute, the company's world-renowned education arm; CBOE Livevol, a leading provider of options technology, trading analytics and market data services; CBOE Vest, an asset management company specializing in target-outcome investment strategies; CBOE Risk Management Conferences (RMC), the premier financial industry forums on derivatives and volatility products; ETF.com, a leading provider of ETF news, data and analysis; and Hotspot, a leading platform for global FX trading. 

The company is headquartered in Chicago with offices in Kansas City, New York, London, San Francisco, Singapore, Hong Kong and Ecuador.  For more information, visit www.cboe.com. ­­­


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CBOE®, Chicago Board Options Exchange®, CFE®, BATS®, BZX®, Livevol®, CBOE Volatility Index® and VIX® are registered trademarks in the U.S. and throughout the world, and CBOE Futures ExchangeSM, CBOE VestSM and CBOE Options InstituteSM are service marks of CBOE Holdings, Inc. and its subsidiaries. S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by CBOE. S&P makes no representations or recommendations concerning the advisability of investing in products that have S&P indexes as their underlying interests. All other trademarks and service marks are the property of their respective owners.  

CBOE Holdings, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities or investments, or third-party products or services. Investors should undertake their own due diligence regarding their securities and investment practices.  This press release speaks only as of this date. CBOE Holdings, Inc. disclaims any duty to update the information herein.

Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities in any jurisdiction where the offer or solicitation would be unlawful under the securities 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.

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