CHICAGO, Oct. 27, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, today announced plans to
launch Nanos by Cboe, a first of its kind options contract designed
to simplify options trading. Nanos by Cboe help make
options trading accessible for the everyday retail trader, allowing
them to start small, learn as they go and grow their trading
confidence.
Cboe plans to launch its first Nanos on the S&P 500 Index in
first-quarter 2022. At a fraction of the size of a standard options
contract, the one-multiplier, cash-settled Nanos S&P 500
contract answers the growing demand for a simpler, cost-effective
way to gain broad exposure to the U.S. equity market. At
1/100th the size of an XSP1 option, the
Mini-S&P 500 Index options contract, Nanos S&P 500 (ticker
symbol: NANOS) help simplify the process of trading options,
letting traders focus on understanding the market and refining
their trading strategies.
The S&P 500 Index (SPX) options market is one of the most
highly traded and liquid options markets across the globe and has
served primarily institutional investors well for years, however,
the higher price of a standard option contract can be a barrier to
entry for retail traders. The smaller size of Nanos may help
beginners gain confidence as they learn and apply basic trading
strategies, utilize simplified analytics when identifying and
sizing trades, and continue on a learning path.
"Our goal with Nanos is to use education to inspire and empower
new market participants to pursue a sustainable financial future.
We believe Nanos are more appropriately sized for retail traders
and enable traders to better express their opinions on market
movements at a comparatively lower premium price," said
Ed Tilly, Chairman, President and
CEO of Cboe Global Markets. "Through our Nanos S&P 500 product,
we are broadening access to a greater universe of traders who can
enjoy the potential benefits options provide, including hedging,
asset allocation and income generation strategies."
Listed options are a time-tested and valuable investment tool
that allow market participants to gain market exposure and manage
their risk, however, it is important that new investors understand
how to use options products and the potential risks2. To
complement the launch of Nanos, the Cboe Options Institute plans to
offer a new options introductory curriculum tailored to retail
traders.
"Cboe Global Markets has a long-standing commitment to
education, which better enables all types of investors to access
our markets, understand our products and potentially benefit from
our solutions," said Rob Hocking,
Head of Derivatives Strategy at Cboe. "We are continuously evolving
our education programs to offer more retail-centric content through
the Options Institute, and we are thrilled to welcome a new
generation of investors to options trading with the launch of
Nanos."
The Nanos S&P 500 product complements Cboe's exclusive suite
of S&P DJI Index options, which include S&P 500® Index
(SPX) options, with A.M. and P.M. settled weekly and monthly
expiring contracts, Mini-S&P 500 Index (XSP) options (which are
one-tenth the size of SPX options), with P.M. settled weekly and
monthly expiring contracts, and options on the S&P 500 ESG
Index options and certain S&P Select Sector Indices with
monthly expiring contracts. The creation of these new smaller
contracts will provide market participants with additional tools to
execute their U.S. large-cap equity trading strategies. Similar to
standard SPX options, Nanos S&P 500 will be structured as
European-style options (no early exercise) and cash-settled (no
delivery or assignment of shares) at expiration with P.M.
settlement. For additional information on Nanos by Cboe, visit
www.cboe.com/nanos.
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
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Angela
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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-OE
CBOE-O
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, FLEX®,
VIX®, ®, and XSP® are registered trademarks and NanosSM,
nanos by CboeSM, Cboe NanoSM, Nano
OptionsSM, Options InstituteSM are service
marks of Cboe Exchange, Inc. or its affiliates. The S&P 500
Index is proprietary to S&P Dow Jones Indices LLC.
S&P®, S&P 500® and SPX® are registered trademarks of
Standard & Poor's Financial Services, LLC and have been
licensed for use with the S&P 500 Index by Cboe Exchange, Inc.
Cboe Exchange's options on the S&P 500 Index 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. © 2021 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 impact of the novel coronavirus ("COVID-19") pandemic,
including changes to trading behavior broadly in the market; 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; our ability to protect our systems and communication
networks from security risks, cybersecurity risks, insider threats
and unauthorized disclosure of confidential information; increasing
competition by foreign and domestic entities; our dependence on and
exposure to risk from third parties; fluctuations to currency
exchange rates; our index providers' ability to maintain the
quality and integrity of their indices and to perform under our
agreements; 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
attract and retain skilled management and other personnel; 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; and the accuracy of our estimates and
expectations. 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, 2020 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 Nanos by Cboe trade on Cboe as a micro-option
(with 1/100th the value of a standard option) on the
Mini-S&P 500 Index, which is 1/10th the value of the S&P
500 Index.
2 While capital risk for a Nanos contract holder is
limited to the price of the premium and is thus reduced relative to
the same number of standard contracts, the capital risk associated
with writing Nanos by Cboe contracts remains open-ended. In
addition to the premium price, a contract holder may also need to
pay applicable fees and commissions.
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SOURCE Cboe Global Markets, Inc.