Cboe Plans to Launch Trading in Mini S&P 500 Index (XSP) Options during Global Trading Hours, Beginning December 11

• Enables customers to trade Mini S&P 500 Index (XSP) options nearly 24 hours, five days a week
• Adds to Cboe's existing offering of SPX options and VIX options and futures during Global Trading Hours (GTH)
• Ability to harness the cash-settled, smaller-sized S&P 500 index options during GTH will help enable traders to adjust positions around the clock with even greater precision and flexibility

CHICAGO, Nov. 4, 2022 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to launch trading in Mini S&P 500 Index (XSP) options during global trading hours (GTH), which will make the product available to customers nearly 24 hours every business day on Cboe Options Exchange, beginning December 11, 2022.

The planned launch will add to Cboe's existing offering of its flagship S&P 500 Index® (SPX) options and Cboe Volatility Index® (VIX®) options and futures during the GTH session. With the ability to trade all four products around the clock, market participants globally will have even more product choice to manage risk more efficiently, react to global macroeconomic events as they are happening and adjust their positions, no matter the hour of the day.

The offering of XSP options during GTH is Cboe's latest enhancement to further broaden customer access to the XSP product suite. In October, Cboe began listing XSP options with Tuesday and Thursday weekly expiring contracts to provide expirations on every business day of the week.

"Cboe's popular, cash-settled SPX options have long been the index option of choice for market participants around the world seeking to manage their U.S. equity exposure, hedge risk and generate income," said Arianne Adams, Senior Vice President, Head of Derivatives and Global Client Services at Cboe Global Markets. "As demand for Cboe's proprietary products continues to grow globally from both institutional and retail customers, the ability to also trade XSP options during GTH helps investors to harness the smaller-sized contract to execute trading strategies with even greater precision and flexibility on a nearly 24 hours-a-day, five days-a-week basis."

In U.S. time, Cboe's GTH session begins at 8:15 p.m. ET and runs until 9:15 a.m. ET the following morning. Regular trading hours (RTH) then run from the U.S. market open at 9:30 a.m. ET until the market close at 4:15 p.m. ET. For each Monday business day, trading in GTH begins Sunday evening at 8:15 p.m. ET. In addition, the RTH session is followed by a curb session for SPX and VIX options – an extra session for electronic trading to adjust, unwind, or close out trades from 4:15 p.m. ET to 5:00 p.m. ET, Monday through Friday.

Alongside SPX and VIX options, XSP options will trade during all three sessions. Similar to SPX options, Cboe will offer both standard monthly-expiring contracts and daily-expiring contracts for XSP options during all sessions.

At 1/10^th the size of a standard SPX options contract, XSP options provide a more manageably sized contract and greater flexibility for new index options traders or traders looking to manage their notional exposure with greater precision. Like SPX options, XSP options also offer potentially favorable tax treatment¹, European-style exercise (no early exercise) and cash settlement (no delivery or assignment of shares) at expiration. 

SPX and XSP options are exclusively listed on Cboe Options Exchange and are among the most actively traded index options products in the world. Trading volumes have continued to hit all-time highs, as a new monthly record of 60.8 million SPX options contracts traded was set in October, up 88 percent from October 2021, with average daily volume (ADV) of 2.9 million contracts. More than 1.3 million XSP options contracts were traded in October, up 255 percent from a year ago, with ADV of 62,000 contracts.

For more information about Cboe's GTH session, please visit https://go.cboe.com/24x5. 

About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX and digital assets, across North America, Europe and Asia Pacific. To learn more, visit www.cboe.com.  

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Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and (VIX®) are registered trademarks of Cboe Exchange, Inc. The S&P 500 Index is proprietary to S&P Dow Jones Indices LLC.   S&P®, S&P 500®, XSP®, S&P 100®, SPX®, SPY®, Select Sector®, The 500 and US500 are trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by Cboe Exchange, Inc. Cboe Exchange's options on the S&P 500 Index, S&P 500 ESG Index and Select Sector Indices are not sponsored, endorsed, marketed or promoted by S&P Dow Jones Indices and S&P Dow Jones Indices does not have any liability with respect thereto.  All other trademarks and service marks are the property of their respective owners. © 2022 Cboe Exchange, Inc. All rights reserved.

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Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 ([email protected]). The information in this document is provided for general education and information purposes only. No statement(s) within this document should be construed as a recommendation to buy or sell a security, or to provide investment advice. Supporting documentation for any claims, comparisons, statistics or other technical data in this document is available by contacting Cboe Global Markets at www.cboe.com/contact. Past performance is not predictive of future returns.

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. 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.

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¹ Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including XSP, are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code. Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations.

SOURCE Cboe Global Markets, Inc.