- Will have a one-multiplier instead of the standard 100
- Available for key broad-based index options including SPX, XSP,
RUT, DJX, MXEA and MXEF
- Smaller notional contract will allow greater precision when
hedging portfolios
CHICAGO, June 21,
2022 /PRNewswire/ -- Cboe Global Markets, Inc.
(Cboe: CBOE), a leading provider of global market infrastructure
and tradable products, plans to launch its new FLEX Micro options
contracts on Monday, June 27. Like
the standard, customizable FLEX options, FLEX Micro options will
enable users to specify key contract terms, including exercise
prices, exercise style, and expiration date. With a contract
multiplier of one, rather than the standard 100, these options
provide investors greater precision to hedge a portfolio based on
notional value, which may equal a fraction of a standard
contract.
FLEX Micro options will be available to trade on the S&P 500
(standard and mini), Russell 2000, Dow Jones Industrial Average,
MSCI Emerging Markets and MSCI EAFE indices, providing investors
with a simple and cost-effective way to gain broad exposure to five
major stock indices and to execute hedging, asset allocation and
income generation strategies. The new contracts will be listed
exclusively on the Cboe Options Exchange.
Some investors may currently trade options with a smaller
contract multiplier in the unregulated over-the-counter (OTC)
market. With the new FLEX Micro options, Cboe will offer investors
the opportunity to trade similar options on-exchange, which
provides the benefits of greater efficiency when initiating and
closing out positions, increased transparency and heightened
contra-party creditworthiness, with OCC as issuer and guarantor of
all listed options.
Arianne Adams, Senior Vice
President and Head of Derivatives and Global Client Services at
Cboe Global Markets, said: "Investors have asked for more precise
tools to hedge their total notional exposure and we're pleased to
meet this demand with FLEX Micros, the latest evolution in our
index product suite. Our new FLEX Micros offer all the benefits of
standard FLEX options, with the added advantage of providing a
nimbler tool to complement our larger contracts to allow for even
greater precision for hedging a portfolio with smaller notional
values. Additionally, investors can now forego the OTC market and
experience the efficiency, liquidity, transparency and trust that
trading in the exchange environment provides."
Created by Cboe in 1993, FLexible EXchange® (FLEX) options are
powerful, customizable portfolio management tools that allow users
to specify key contract terms, including exercise prices, exercise
styles, and expiration dates, on major stock index options (SPX®,
XSP℠, RUT℠, DJX℠, MXEA℠, and MXEF℠) as well as individual equities.
For more information on FLEX and FLEX Micro options, click
here.
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, in 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
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Kenneth Hill,
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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-C
Cboe®, Cboe Volatility Index®,
VIX®, FLEX®, FLexible EXchange® and Cboe
Global Markets® are registered trademarks of Cboe Exchange, Inc.
All other trademarks and service marks are the property of their
respective owners.
Cautionary Statements Regarding Forward-Looking
Information
Certain information contained in this press release may
constitute forward-looking statements. We caution readers not to
place undue reliance on any forward-looking statements, which speak
only as of the date made and are subject to a number of risks and
uncertainties.
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SOURCE Cboe Global Markets, Inc.