CHICAGO and HOLLYWOOD, Fla., Jan. 25, 2016 /PRNewswire/ -- CBOE Holdings, Inc. (NASDAQ: CBOE) and The Vest Financial Group Inc. (Vest) announced today at the Inside ETFs Conference that CBOE has made a majority equity investment in Vest, an investment advisor that provides options-centric products. Previous investors in Vest, including Y Combinator, Payment Ventures, and First Round Capital, have exited.
Vest through its subsidiaries provides options-based investment advisory services through packaged products and develops technology solutions for options-based investments. Vest's products are protection-oriented, allowing investors to maintain market exposure with a degree of protection against downturns.
Vest's technology-powered managed account advisory platform is accessible through financial advisors and is designed to provide investors with access to the same investment tools and protections available to institutions and high net worth individuals. The platform allows an investor to choose the desired level of risk for new or existing stock/ETF positions, then structures a "Protective Strategy," using a portfolio of exchange-traded options to match the investor's personalized investment objectives and desired protection as closely as possible.
As a result of the investment, Vest becomes a majority-owned subsidiary of CBOE. Karan Sood will continue to lead the firm as CEO. Bill Kung, Vest's former CEO, will step down from his current role as President to focus on Vest's technology solutions business.
The Vest acquisition allows for enhanced integration of CBOE's proprietary products, strategy indexes and options expertise into Vest's platform, which substantially reduces the complexity of options trading while providing investors with targeted protection, enhanced returns, and a level of predictability unattainable with most other investments. Vest plans to launch Unit Investment Trusts (UITs), Mutual Funds and Exchange Traded Products (ETPs).
"We are delighted to announce our investment in Vest," said Edward T. Tilly, CEO of CBOE. "We're looking forward to an ongoing collaboration between CBOE and the highly talented Vest team. CBOE and Vest share a passion for advancing options innovation and are closely aligned philosophically. Our investment in Vest is a major step forward in our ability to democratize the risk management properties of options and volatility trading."
"This alliance provides an even stronger partner for our customers," said Karan Sood, CEO and Co-Founder of Vest. "CBOE is globally recognized as a leading exchange for derivative products and has a rich history of product innovation, making them the ideal strategic partner for us going forward. Joining forces with CBOE will enable Vest to offer the broadest portfolio of industry-leading, innovative options-based investment solutions to an even wider range of customers."
CBOE's investment in Vest was funded with existing cash. It is not expected to be material in terms of CBOE Holdings, Inc.'s revenue or earnings for 2016. However, CBOE is optimistic about the potential for growth in the long term.
Certain information contained in this news 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.
About Vest Financial Group Inc.:
Vest Financial Group Inc. (Vest) was founded in 2012 by Jeff Chang and Karan Sood. Bill Kung and Daniel Roos joined in 2014 to launch the technology solutions line of business. Through its two lines of business, Vest is dedicated to serving investment advisor and brokerage firms in bringing wider access to innovative options-based strategies. Vest's products are protection-oriented, providing investors with targeted protection, enhanced returns, and a level of predictability unattainable with most other investments services available today, and include technology-powered managed account solutions for financial advisors and technology solutions for brokerage firms. In 2016, Vest expects to serve as portfolio consultant and license its proprietary methodology to Unit Investment Trusts, as well as to launch and serve as investment advisor to a series of open-end funds. Additional information on Vest and its services can be found at www.vestfin.com.
About CBOE Holdings, Inc.:
CBOE Holdings, Inc. (NASDAQ: CBOE) is the holding company for Chicago Board Options Exchange (CBOE), the CBOE Futures Exchange (CFE), and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as options and futures on the CBOE Volatility Index (VIX Index) and S&P 500 options (SPX), the most active U.S. index option. Other products engineered by CBOE include equity options, security index options, Weeklys options, FLEX options, and benchmark products such as the CBOE S&P BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute, Livevol options analytics and data tools, and www.cboe.com, the go-to place for options and volatility trading resources.
CBOE®, Chicago Board Options Exchange®, CFE®, Execute Success®, FLEX®, Livevol®, CBOE Volatility Index® and VIX® are registered trademarks, and BuyWriteSM, BXMSM, CBOE Futures ExchangeSM, The Options InstituteSM and WeeklysSM are service marks of Chicago Board Options Exchange, Incorporated (CBOE). Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by CBOE and CFE. All other trademarks and service marks are the property of their respective owners.
SOURCE CBOE Holdings, Inc.