CBOE Holdings Signs Licensing Agreement to List Options on FTSE and Russell Indices

- CBOE to develop new index options products in the U.S. based on FTSE and Russell indices

- Strengthens CBOE's existing relationship with Russell indices

- Parties committed to increasing investor education on options

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Feb 26, 2015, 02:35 ET

LONDON and CHICAGO, Feb. 26, 2015 /PRNewswire/ -- CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that it has entered into a licensing agreement with London Stock Exchange Group (LSEG), to develop and list options based on more than two dozen FTSE and Russell indices. Under the agreement, cash-settled options on these indices will now be available to trade in the United States on the Chicago Board Options Exchange (CBOE). In addition, as part of the agreement, CBOE and LSEG will collaborate on new index options products and investor education globally. The trading in FTSE and Russell index-based options on the CBOE will begin in the coming months.

LSEG's leading global index franchises, FTSE and Russell indices, represent a diverse group of domestic and global equities with international appeal: the Russell indices include widely followed benchmarks of U.S.-based stocks while the FTSE indices focus primarily on global and emerging equity benchmarks that are widely used in U.S. market.

"We are thrilled to embark on an agreement that pairs LSEG's premier FTSE and Russell indices with CBOE options and volatility trading expertise. This collaborative partnership will significantly expand CBOE's product line across new asset classes and markets, and create new trading opportunities for our customers. CBOE and LSEG share a passion and vision for expanding the index space through product development and investor education. This agreement enables us to leverage complementary strengths," said Edward Tilly, CEO, CBOE Holdings, Inc.

"This is a very exciting development for LSEG's global index franchise business through FTSE and Russell indices. Both firms have a large and growing U.S. client base using domestic U.S. and international benchmarks, and partnering with a global leader like CBOE will provide significant benefits for market participants in the years to come," said Xavier Rolet, CEO, London Stock Exchange Group.

FTSE and Russell indices are among the largest and most widely used by investors in the U.S., and U.S. ETFs tracking FTSE and Russell comprise some of the most actively traded globally. CBOE offers the widest array of index option and volatility products in the world. While CBOE and Russell have worked closely since 1992, the CBOE license to trade options on the FTSE and Russell indices further expands and strengthens the company's product offering into new asset classes and global markets.

The deal includes the bellwether FTSE and Russell indices: the FTSE GEIS (Global Equity Index Series), which covers 98 percent of the world's investable market capitalization; FTSE EPRA/NAREIT; FTSE China 50; the Russell 2000^® Index, which measures performance of the small-cap segment of the U.S. equity market; the Russell 1000^® Index, which comprises a broad large-cap equity segment; the Russell 1000^® Value Index, which measures the large-cap equities with lower price-to-book ratios and expected growth values; and the Russell 1000^® Growth Index, which measures large-cap stocks with higher price-to-book ratios and anticipated growth.

The partnership with CBOE not only seeks to extend the range of these indices but to introduce new options for U.S. investors. CBOE intends to launch a significant new co-branded product every year for the full duration of the agreement, including the opportunity to list cash-settled index options. CBOE intends to develop options based on other FTSE and Russell index products globally as well. Both firms will also combine their significant global resources toward investor education on index-based options.

For additional information on CBOE's new FTSE and Russell index options, go to www.cboe.com/FTSERussell.

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 S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, Weeklys options, LEAPS 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 and www.cboe.com, the go-to place for options and volatility trading resources.

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