- Agreement furthers Cboe's growing global index business and
track record in index innovation
- Enables Cboe to exclusively develop and offer new indices and
solutions based on select Validus' proprietary methodologies
CHICAGO, June 22,
2022 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe:
CBOE), a leading provider of global market infrastructure and
tradable products, today announced it has signed a licensing
agreement with Validus Macro Strategies, a provider of rule-based
options-based solutions for institutional investors, that creates
the framework for Cboe and Validus to collaborate on the
development of new indices and solutions.
Under this agreement, Cboe will have exclusive rights to develop
and offer a range of derivatives-based indices and associated
investable financial products using Validus' proprietary
methodologies. Cboe expects to initially launch a new series of
Cboe Validus Dynamic Indices designed to show the performance of
active BuyWrite and PutWrite strategies on major U.S equity indices
in the coming months. In addition, Cboe may work with Validus to
develop other active indices for unique index-based products in the
future.
The new relationship furthers Cboe's growing global index
business and builds on Cboe's proven track record in creating and
disseminating some of the industry's most innovative index
offerings, including the Cboe Volatility Index® (VIX® Index), and
its suites of Strategy Performance Benchmark indices and Target
Outcome indices.
"At Cboe, we seek to innovate to define markets that benefit all
participants. Often, this begins with indexing, which has long been
a Cboe core competency," said Catherine
Clay, Executive Vice President, Data and Access Solutions at
Cboe Global Markets. "Cboe has been a pioneer of strategy
performance benchmark indices, which continue to gain traction with
investors seeking to use options to hedge risk, reduce volatility
and enhance yields. Validus offers a unique, rule-based methodology
for constructing options strategies that we believe could further
enhance investment outcomes, and we're excited to leverage their
expertise to help develop additional index solutions to meet
customer demand."
"Validus is excited to partner with Cboe Global Markets, a
global leader in indices and index products. Combining our
risk-centric philosophy and derivatives expertise with Cboe's focus
on product innovation and world class trading infrastructure
creates the ideal platform for the development of exciting
investment products and risk solutions," said Kevin Lester, Chief Executive Officer at Validus
Risk Management.
Validus' proprietary methodologies differ from traditional
options-based strategies in that they are active and rule-based at
the same time. Characteristics such as options expiries, strikes or
roll dates are dynamically selected. The new Cboe Validus Dynamic
Indices, unlike many benchmark indices, are specifically designed
to be used as investable strategies by a wide range of investors.
The indices also account for trading impact and consider other
operational aspects such as margin rules and the impact of interest
rates.
"We are very excited and thankful for the opportunity to work
with Cboe to bring innovative solutions based on our hands-on
market experience to investors," said Kambiz Kazemi, Chief Investment Officer at
Validus Macro Strategies. "Markets have been undergoing major
structural shifts in the last two decades and the effect of these
changes are now becoming increasingly apparent to investors.
Options-based strategies and indices are increasingly a crucial
part of building portfolios and managing their risk. Through this
partnership with Cboe, we look forward to bringing practical
state-of-the-art solutions to investors and helping them navigate
the road ahead."
The planned launch of the Cboe Validus Dynamic Indices will
complement Cboe's existing suite of Strategy Performance Benchmark
indices, which aim to provide investors with an effective way to
employ options strategies to improve risk-adjusted returns within
their investment portfolio.
A BuyWrite, also called a covered call, generally is considered
to be an investment strategy in which an investor buys a stock or a
basket of stocks, and also sells call options that correspond to
the stock or basket of stocks. A PutWrite generally involves the
selling of put options to earn premiums.
As a leader in the creation and dissemination of more than 450
volatility and derivatives-based indices, Cboe is at the forefront
of creating an investment ecosystem that encompasses product
design, calculation, administration, listing, trading, and
benchmark licensing. To learn more, visit
https://www.cboe.com/indices/.
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.
About Validus Macro Strategies
Validus Macro Strategies (a subsidiary of Validus Risk
Management with offices in London,
Toronto and New York) specializes on the design and
implementation of derivatives-based investment strategies and
hedging solutions. Our rule-based strategies stem from the
combination of hands-on expertise of our principals – who have
successfully navigated a wide range of market regimes – and
industry-leading proprietary technology that enables us to
translate their expertise into investment strategies and solutions.
We seek to enable market participants to access institutional
quality investment solutions with attractive risk/reward and be a
reference and active participant in derivatives education and
content.
Media
Contacts
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Analyst
Contact
|
Angela
Tu
|
Tim
Cave
|
|
Kenneth Hill,
CFA
|
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+1-646-856-8734
|
+44 (0)
7593-506-719
|
|
1-312-786-7559
|
|
atu@cboe.com
|
tcave@cboe.com
|
|
khill@cboe.com
|
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CBOE-OE
CBOE-O
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SOURCE Cboe Global Markets, Inc.