CHICAGO, April 29, 2020 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, today announced it has signed an exclusive licensing agreement with FTSE Russell that extends Cboe's rights to develop and list index options products based on FTSE Russell global indices through 2030. The extended partnership enables Cboe to continue its successful FTSE Russell-based options franchise and provides opportunity for Cboe to further expand its product suite and create additional trading opportunities for investors.
Under the renewed agreement, initially signed in 2015, Cboe will continue to have exclusive rights in the U.S. to offer trading in options on the widely followed Russell 2000® Index (RUT), Russell 1000® Index (RUI), Russell 1000® Style (Growth (RLG) and Value (RLV)) Indices for the next 10 years. Cboe also intends to collaborate with FTSE Russell to drive greater volume and liquidity through expanded product offerings, including the potential for new options on nearly two dozen additional FTSE Russell indices, subject to regulatory review, education, content and services for customers and market participants.
Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, said: "We are pleased to extend our relationship with FTSE Russell. This is a strategically important agreement that provides Cboe significant extension of our exclusivity and the runway to continue investing in our relationship and product set with FTSE Russell. We look forward to our strengthened collaboration, combining FTSE Russell's leading indices with Cboe's derivatives expertise, to create opportunities to further expand our universe of index options in the years to come."
Waqas Samad, CEO of FTSE Russell Indexes and Group Director, Information Services, LSEG, said: "We're excited to renew our successful relationship with Cboe Global Markets for another decade, building on the past five successful years. The depth, breadth and quality of FTSE Russell global indexes combined with the derivatives reach, reputation and commitment to education of Cboe Global Markets is a powerful combination for our clients. This is particularly true now during a time of market volatility, when investors can benefit more than ever from index-based options strategies."
FTSE Russell indices are among the largest and most widely used by investors in the U.S., and U.S. ETFs tracking FTSE Russell comprise some of the most actively traded globally. Index-based cash-settled options on the FTSE Russell indices may serve as valuable investment tools for investors to gain efficient exposure to U.S. and global equity markets, manage risk and volatility, and enhance yield.
In 2019, average daily volumes for FTSE Russell index-based options traded at Cboe were approximately 40,000 contracts with total open interest standing at over 500,000 contracts at year end. Options on the Russell 2000® Index (RUT) were first offered at Cboe in 1992, and continue to be one of the five most liquid cash-settled equity index options listed in the U.S.
For additional information on Cboe's FTSE Russell index options, visit http://www.cboe.com/FTSERussell.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) is one of the world's largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. The company is committed to defining markets to benefit its participants and drive the global marketplace forward through product innovation, leading edge technology and seamless trading solutions.
The company offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and volatility products based on the Cboe Volatility Index (VIX Index), recognized as the world's premier gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the third largest stock exchange operator in the U.S. In addition, the company operates one of the largest stock exchanges by value traded in Europe and is a leading market globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas City and Amsterdam. For more information, visit www.cboe.com.
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX®are registered trademarks of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners.
Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with FTSE Russell. Investors should undertake their own due diligence regarding their securities and investment practices. This press release speaks only as of this date. Cboe 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 in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. 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.
Cboe Global Markets, Inc. and its affiliates, to the maximum extent permitted by applicable law, make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, 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 FTSE Russell indexes to track the performance of the various strategies, and shall not in any way be liable for any inaccuracies or errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the FTSE Russell indexes and shall not in any way be liable for any inaccuracies or errors.
SOURCE Cboe Global Markets, Inc.