- Cboe and Metaurus collaborate to develop three new US equity
indices: the Cboe US Large Cap 100 Index, the Cboe US Large Cap
Lead 50 Index, and the Cboe US Large Cap Lag 50 Index
- Leverages combined strengths of Cboe's derivatives-based
indexing capabilities and Metaurus' Dynamic
ReassignmentSM technology
- Plans to develop tradable futures products based on indices,
subject to regulatory review
CHICAGO, May 9, 2024
/PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's
leading derivatives and securities exchange network, and Metaurus
Advisors, LLC (Metaurus), an asset management company focusing
on financial innovation, today announced plans to collaborate
on three new US equity indices: the Cboe US Large Cap 100 Index,
the Cboe US Large Cap Lead 50 Index (the Cboe Lead 50), and the
Cboe US Large Cap Lag 50 Index (the Cboe Lag 50). The indices are
targeted to launch by the end of 2024.
The Cboe US Large Cap 100 Index is designed to be an
equal-dollar-weighted index comprised of 100 of the largest US
stocks by market capitalization, rebalanced quarterly, that
replicates the sector capitalization weightings of the largest
companies listed on US exchanges. The Cboe Lead 50 and Cboe Lag 50,
both equal-dollar-weighted indices, are designed to measure the
total returns of the top 50 and bottom 50 performing companies,
respectively, within the Cboe US Large Cap 100 Index on a quarterly
basis.
In addition, under an agreement between Cboe Exchange, Inc. and
Metaurus, Cboe has the exclusive rights to use aspects of Metaurus'
patent application to construct indices based on US equity
securities, including the Cboe US Large Cap 100, Cboe Lead 50, and
Cboe Lag 50 indices. The latter two indices are designed to provide
real-time insight as to how returns of the top 50 and bottom 50
individual stocks that make up the Cboe US Large Cap 100 vary over
a fixed quarterly timeframe and are expected to be a gauge for
realized dispersion, a key component to portfolio
returns.
The collaboration 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.
"These indices will utilize Cboe's world-class index innovation
capabilities, combined with the simple, yet powerful,
patent-pending technology developed by Metaurus, to help traders
further understand how individual stocks contribute to the overall
performance of the broader market," said Rob Hocking, Senior
Vice President and Head of Product Innovation at Cboe Global
Markets. "Dispersion is a critical aspect of market return, and
Cboe is pleased to collaborate with Metaurus to provide the
marketplace with indices that can be used as a measure of return
dispersion on a real-time basis."
"The team at Metaurus has been in the business of financial
engineering for over 35 years," said Richard Sandulli, Co-CEO
of Metaurus. "Our Dynamic
ReassignmentSM technology and collaboration
with Cboe allow us to work with the leading derivatives exchange to
develop new, cutting-edge solutions and bring them to commercial
viability. The Cboe US Large Cap 100, the Cboe Lead 50, and the
Cboe Lag 50 indices build on our collective expertise in bringing
novel investment products to the broader market."
Cboe Labs, Cboe's product innovation hub, plans to develop
tradable futures products based on the Cboe Lead 50 and the Cboe
Lag 50 indices to be listed on Cboe Futures Exchange, subject to
regulatory review.
About Cboe Global Markets
Cboe Global Markets (Cboe:
CBOE), the world's leading derivatives and securities exchange
network, delivers cutting-edge trading, clearing and investment
solutions to people around the world. Cboe provides trading
solutions and products in multiple asset classes, including
equities, derivatives, FX, and digital assets, across North America, Europe and Asia
Pacific. Above all, we are committed to building a trusted,
inclusive global marketplace that enables people to pursue a
sustainable financial future. To learn more about the Exchange for
the World Stage, visit www.cboe.com.
About Metaurus Advisors, LLC
Metaurus Advisors LLC is an SEC-registered investment advisor whose
partners have decades of experience developing cutting-edge
derivative and structured products. Metaurus' growing IP portfolio
is the basis for multiple strategies utilized in both public and
private investment formats. Metaurus is committed to helping
investors unlock the sources of investment return. Please visit
www.Metaurus.com for more information.
Media Contacts
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Cboe Analyst Contact
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Angela Tu (Cboe)
|
Sean Dillon (Metaurus)
|
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Kenneth Hill, CFA
|
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+1-646-856-8734
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+1-908-305-4417
|
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+1-312-786-7559
|
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atu@cboe.com
|
SDillon@Metaurus.com
|
|
khill@cboe.com
|
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Cboe®, Cboe Global Markets®, Cboe
Volatility Index®, and VIX® are registered
trademarks of Cboe Exchange, Inc. or its affiliates. All other
trademarks and service marks are the property of their respective
owners.
Neither Cboe Global Markets, Inc. and its affiliates nor
Metaurus 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 Metaurus. Investors should undertake their own due
diligence regarding their securities, futures, and investment
practices. This press release speaks only as of this date. Cboe
Global Markets, 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 or futures
in any jurisdiction where the offer or solicitation would be
unlawful under the laws of such jurisdiction. It is not possible to
invest directly in an index. 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.
Neither Cboe Global Markets, Inc. and its affiliates
nor Metaurus make any warranty or guarantee, expressed or
implied, including, without limitation, of merchantability, fitness
for a particular purpose or any use whatsoever, 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 indices referenced in this press release to
track the performance of their respective securities, generally, or
the performance of the indices referenced in this press release or
any subset of their respective securities, and shall not in any way
be liable for any inaccuracies, errors, or omissions.
There are important risks associated with transacting in any
of the Cboe Company products discussed here. Before engaging in any
transactions in those products, it is important for market
participants to carefully review the disclosures and disclaimers
contained
at: https://www.cboe.com/us_disclaimers/.
Trading in futures and options on futures is not suitable for
all market participants and involves the risk of loss, which can be
substantial and can exceed the amount of money deposited for a
futures or options on futures position. You should, therefore,
carefully consider whether trading in futures and options on
futures is suitable for you in light of your circumstances and
financial resources. You should put at risk only funds that you can
afford to lose without affecting your lifestyle. For additional
information regarding the risks associated with trading futures and
options on futures and with trading security futures, see
respectively the Risk Disclosure Statement Referenced
in CFTC Letter 16-82 and the Risk
Disclosure Statement for Security Futures Contracts.
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.