FOR IMMEDIATE RELEASE
CBOE WINS "EXCHANGE OF THE YEAR, NORTH AMERICA" AWARD FOR EXCELLENCE AND INNOVATION
Chicago and Miami Beach, FL - May 5, 2006
- The Chicago Board Options Exchange (CBOE) announced today that it has been named "Exchange of the Year, North America" in recognition of "excellence and innovation" at a May 4th ceremony in Coral Gables, FL, sponsored by Structured Products magazine. CBOE's continued innovations in creating new products and investors' tools were cited as criteria for the selection.
"We are extremely proud to be selected from a fiercely competitive field to receive this prestigious award and to be recognized as the leader in product development and for broadening the options marketplace," said CBOE Chairman and CEO William J. Brodsky. "Throughout its history, CBOE has been unwavering in its commitment to creating innovative new products and expanding the number of useful tools available to investors. We are especially pleased that the innovative work done by our research and product development team is recognized by the industry it serves."
"The CBOE BuyWrite Index has opened investor's eyes to the incredible results of a time-tested strategy and the proliferation of buy-write funds is testament to its acceptance. Likewise, the growing volume and open interest in our Volatility Index products is evidence that volatility is on its way to becoming an asset class unto itself, and the investment community has just scratched the surface of putting these new volatility products to use," said CBOE Executive Vice President of Business Development, Edward Provost.
The key initiatives that led to the award include the introduction of the CBOE S&P 500 BuyWrite Index (BXM), the first major benchmark for options strategies, and the related published studies on buy-write strategies by Professor Robert Whaley of Duke University and by the Ibbotson Associates consulting firm. These initiatives facilitated tremendous recent growth in investor understanding of, and interest in, buy-write strategies, as more than $20 billion has been invested in 40 new buy-write investment products and funds in the past two years.
CBOE's accomplishments were also honored in 2004 when CBOE was awarded the Most Innovative Benchmark Index distinction for the creation of the CBOE S&P 500 BuyWrite Index, and the Most Innovative Index Derivative Award for the CBOE Volatility Index (VIX) futures product, at the 2004 Super Bowl of Indexing Conference.
About the CBOE S&P 500 BuyWrite Index (BXM)
Created and introduced by CBOE in April 2002, the BXM measures the performance of a theoretical portfolio that sells (or "writes") Standard & Poor's 500 Index call options (SPX) against a portfolio of the stocks included in the Standard & Poor's 500 Stock Index (S&P 500). The index has become the standard benchmark for investors and investment professionals seeking a long-term track record of the buy-write strategy.
CBOE also calculates and disseminates the CBOE S&P 500 2% OTM BuyWrite Index (BXY), using options that are out-of the money, as opposed to at-the-money; as well as BuyWrite Indexes based on the Dow Jones Industrial Average (BXD), NASDAQ-100 (BXN) and beginning May 5th, the CBOE Russell 2000 BuyWrite Index (BXR).
About VIX Futures and Options
VIX futures (ticker symbol VX) and options (ticker symbol VIX) are based on the CBOE Volatility Index, which was created by CBOE in 1993 and quickly became the benchmark index of market sentiment. VIX futures, the first tradable product based on the VIX, began trading on the CBOE Futures Exchange (CFE) on March 26, 2004.VIX options were launched at CBOE on February 24, 2006, and by April, average daily volume was more than 15,000 contracts per day, with open interest regularly exceeding 300,000 contracts.
In addition to its flagship volatility index, VIX, CBOE also calculates and publishes the CBOE DJIA Volatility Index (VXD), CBOE Nasdaq-100 Volatility Index (VXN), and as of May 5th, the CBOE Russell 2000 Volatility Index (RVX). The CBOE Futures Exchange offers futures on VIX, VXD and 3-Month and 12-Month Variance contracts.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the SEC. For additional information about the CBOE and its products, access the CBOE web site at http://www.cboe.com/. For more information about this news release please visit http://www.cboe.com/choosecboe.
CBOE®, Chicago Board Options Exchange®, CBOE Volatility Index®, and VIX® are registered trademarks of Chicago Board Options Exchange, Incorporated (CBOE). BXM, BXD, BXN, BXR, BXY, VXD, VXN, RVX and SPX are service marks of CBOE. CFESM is a service mark of CBOE Futures Exchange, LLC. Dow Jones®, DJIA®, and Dow Jones Industrial AverageSM are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by CBOE. CBOE's Options on the Dow based on the Dow Jones indexes and financial products based on the CBOE DJIA BuyWrite Index and the CBOE DJIA Volatility Index are not sponsored, endorsed, marketed or promoted by Dow Jones and Dow Jones makes no representations regarding the advisability of investing in such products. S&P®and S&P 500® are registered trademarks of the McGraw-Hill Companies, Inc. and are licensed for use by CBOE. The Russell 2000® Index is a registered trademark of The Frank Russell Company, used under license. Nasdaq®, Nasdaq-100® and Nasdaq-100 Index are trademarks of The Nasdaq Stock Market, Inc. (with which its affiliates are the "Corporations"). The CBOE Nasdaq-100 BuyWrite Index, and the CBOE Nasdaq-100 Volatility Index ("Indexes") are not derived, maintained, published, calculated or disseminated by the Corporations. Neither the Indexes nor any Derivative Product based on the Indexes has been passed on by the Corporations as to its legality or suitability. Such Derivative Products are not issued, endorsed, sold, sponsored, marketed or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Indexes. The methodologies of the CBOE BuyWrite Indexes and the CBOE Volatility Indexes are owned by CBOE and may be covered by one or more patents or pending patent applications. CBOE's BuyWrite Indexes are designed to represent a proposed hypothetical buy-write strategy. Like many passive indexes, the BuyWrite Indexes do not take into account significant factors such as transaction costs and taxes and, because of factors such as these, many or most investors should be expected to under perform passive indexes. Investors attempting to replicate the BuyWrite Indexes should discuss with their brokers possible timing and liquidity issues. Transaction costs and taxes for buy-write strategies could be significantly higher than transaction costs for a passive strategy of buying-and-holding stocks. Past performance does not guarantee future results.