CBOE Holdings is to launch options on FTSE 100 Index and the FTSE China 50 Index. Chief Executive Officer Edward T Tilly (pictured) made the announcement at the the firm’s Risk Management Conference Asia (RMC) in Hong Kong.
Options on the two FTSE Russell indexes are expected to begin trading at CBOE on 22 December, 2015.
The listing of the new FTSE 100 and FTSE China 50 Index options are part of a licensing agreement forged by CBOE and London Stock Exchange Group (LSEG) in February 2015. The deal made CBOE the exclusive provider of options on more than two dozen LSEG-owned FTSE Russell indexes, and also provided for the two companies to collaborate on the development of additional index options products and investor education globally.
Under the agreement, CBOE on April 1 became the exclusive US home for options on the Russell 2000 Index (RUT), the widely followed measure of the US small-cap market. On October 20, CBOE launched options on three Russell large-cap indexes: the Russell 1000 Index (RUI), the Russell 1000 Value Index (RLV) and the Russell 1000 Growth Index (RLG).
The new FTSE Russell options will enable investors to gain exposure to the largest and most liquid segments of the UK and Chinese equity markets. The options are based on mini versions of the FTSE 100 Index (UKXM), a market-capitalisation weighted index of 100 UK-listed blue chip companies traded on the London Stock Exchange (LSE), and the FTSE China 50 Index (FXTM), a real-time tradable index comprising 50 of the largest Chinese stocks, traded on the Stock Exchange of Hong Kong (SEHK).
"We are pleased to expand our customer offerings with these new global index options," says Tilly. "Institutional and other investors use both the FTSE 100 and the FTSE China 50 as key performance benchmarks. The FTSE 100 Index also is used as a performance measure by index-tracking funds and derivatives, and the FTSE China 50 was designed specifically for international investors seeking to gain exposure to Chinese equity markets."
Ron Bundy, CEO North America Benchmarks for FTSE Russell indexes, says: "It is very exciting to continue to grow our relationship with the CBOE, offering traders and investors increasing access to our full range of US and global benchmarks. We believe the most recent introduction by CBOE helps illustrate the value to clients in working with a true global index provider."
The FTSE Russell Indexes represent a diverse group of domestic and global equities with international appeal. They are among the largest and most widely used by US investors. In addition, US ETFs tracking FTSE Russell Indexes comprise some of the most actively traded ETFs globally.
