Archived CBOE, CBSX, & CFE Press Releases

FOR IMMEDIATE RELEASE


CBOE TO LAUNCH OPTIONS ON THE CBOE NASDAQ-100 VOLATILITY INDEX AND CBOE RUSSELL 2000 VOLATILITY INDEX ON SEPTEMBER 27, 2007

Chicago, IL and Montreux, Switzerland, September 6, 2007 - The Chicago Board Options Exchange (CBOE) announced today that it plans to launch options on the CBOE Nasdaq-100 Volatility Index (ticker symbol VXN) and the CBOE Russell 2000 Volatility Index (ticker symbol RVX) beginning Thursday, September 27, 2007, under licensing agreements with The Nasdaq Stock Market, Inc. and The Russell Investment Group.

These two new contracts expand the suite of volatility products offered exclusively at CBOE and the CBOE Futures Exchange (CFE). CBOE will now offer options on three of CBOE's volatility benchmarks, as VXN and RVX options will join the popular CBOE Volatility Index (VIX) options. Since their launch in February 2006, VIX options have already traded nearly 20 million contracts, making VIX options the most successful new product launch in CBOE history.

At the CBOE Futures Exchange, futures on six volatility products are currently offered for trading. Futures on the CBOE Nasdaq-100 Volatility Index (VXN) and the CBOE Russell 2000 Volatility Index (RVX) began trading at CFE on July 6, 2007. In their first full month of trading, RVX futures traded more than 6,000 contracts, the best new product debut ever at CFE, while volume in VXN futures was nearly 2,000 contracts during the first 30 trading days. CFE's other volatility products include: futures on the CBOE Volatility Index (VIX) and the CBOE DJIA Volatility Index (VXD), as well as CBOE S&P 500 3-month (VT) and CBOE S&P 500 12-month Variance (VA) futures.

"CBOE pioneered the volatility space with the creation of the CBOE Volatility Index (VIX), the preeminent measure of market volatility. Subsequently, CBOE's introduction of options and futures on VIX made volatility itself a tradable asset class. The growth of VIX futures and options has been impressive, and we are eager to expand our suite of volatility products. CBOE's introduction of options on the Nasdaq-100 Volatility and Russell 2000 Volatility Indexes follows the promising launch of the futures on those indexes in July. We are extremely pleased to provide investors with options on these widely-followed volatility benchmarks," said CBOE Chairman and CEO William J. Brodsky.

CBOE Volatility Indexes are designed to reflect investors' consensus view of expected volatility over the next 30 days in the respective underlying indexes, and as such, can be used as a benchmark of investor sentiment. CBOE Volatility Indexes are derived from options prices of each index traded at CBOE.

The CBOE Nasdaq-100 Volatility Index (VXN) is an up-to-the minute market estimate of expected volatility that is calculated by using real-time Nasdaq-100 Index (NDX) option bid/ask quotes. VXN uses nearby and second nearby options listed at CBOE with at least eight days left to expiration and then weights them to yield a constant, 30-day measure of the expected volatility of the Nasdaq-100 Index. The same methodology is applied to the CBOE Russell 2000 Volatility Index (RVX), which uses the real-time Russell 2000 Index (RUT) option bid/ask quotes.


Both VXN and RVX options will be cash-settled, European-style exercise, and are based on the value of the respective underlying Volatility Index. Trading hours will be 8:30 a.m. to 3:15 p.m. (Chicago Time). Group One Trading has been named the Designated Primary Market Maker (DPM) in both the VXN and RVX options. To learn more about CBOE's Volatility Indexes, including methodology, daily and historical data and charts, contract specifications, and other information, please visit www.cboe.com/volatility.


CBOE Volatility Indexrelated to:
Underlying Index Options
Volatility
Index
CBOE Options
Ticker Symbol
CFE Futures
Ticker Symbol
S&P 500 Index
SPX
VIX
VIX
VX
Nasdaq-100 Index
NDX
VXN
VXN
VN
Russell 2000 Index
RUT
RVX
RVX
VR
Dow Jones Industrial Average
DJX
VXD
(N/A)
DV


Contacts:

Debbie Baratz
(312) 786-7123
baratz@cboe.com

Gary Compton
(312) 786-7612
comptong@cboe.com


CFE® is a registered trademark and CBOE Futures Exchange is a service mark of CBOE Futures Exchange, LLC. CBOE®, Chicago Board Options Exchange®, CBOE Volatility Index® and VIX® are registered trademarks of Chicago Board Options Exchange, Incorporated. The methodology of the CBOE Volatility Indexes (VIX, VXD, VXN, RVX) is owned by CBOE and may be covered by one or more patents or pending patent applications. SPXSM is a service mark of Chicago Board Options Exchange, Incorporated. Dow Jones® and DJIA® are registered trademarks of Dow Jones & Company, Inc. Dow Jones Industrial AverageSM and Options on the DowSM are service marks of Dow Jones & Company. CBOE's Options on the Dow based on the Dow Jones Industrial Average and financial products based on 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. Nasdaq®, Nasdaq-100® and Nasdaq-100 Index® are trademarks of The Nasdaq Stock Market, Inc. (with which its affiliates are the "Corporations"). These marks are licensed for use by CBOE in connection with the trading of products based on the Nasdaq-100 Index. The products have not been passed on by the Corporations as to their legality or suitability. The products are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S). The Russell 2000® Index is a registered trademark of Russell Investment Group used under license. S&P® and S&P 500® are registered trademarks of the McGraw-Hill Companies, Inc. and are licensed for use by the Chicago Board Options Exchange, Incorporated pursuant to a License Agreement.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

In connection with the proposed restructuring transaction, CBOE Holdings, Inc. ("CBOE Holdings") has filed certain relevant materials with the United States Securities and Exchange Commission (SEC), including a registration statement on Form S-4. Members are encouraged to read the registration statement, including the proxy statement/prospectus that are a part of the registration statement, because it contains important information about the proposed transaction. Members are able to obtain a free copy of the proxy statement/prospectus, as well as the other filings containing information about CBOE Holdings and the Chicago Board Options Exchange, Incorporated ("CBOE"), without charge, at the SEC's Web site, http://www.sec.gov/, and the companies' website, http://www.cboe.com/. In addition, CBOE members may obtain free copies of the proxy statement/prospectus and other documents filed by CBOE Holdings or the CBOE from CBOE Holdings by directing a request to the Office of the Secretary, CBOE Holdings, Inc., 400 South LaSalle Street, Chicago, Illinois 60605.

CBOE Holdings, the CBOE and their respective directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of CBOE Holdings and of the CBOE is available in the prospectus/proxy statement.