FOR IMMEDIATE RELEASE
CBOE INTRODUCES NEW CRUDE OIL VOLATILITY INDEX (OVX); New Benchmark Applies VIX Methodology To Options On The United States Oil Fund (USO)
CHICAGO, July 14, 2008
- The Chicago Board Options Exchange (CBOE) announced today that beginning on Tuesday, July 15, 2008, the Exchange will be publishing the CBOE Crude Oil Volatility Index (ticker symbol OVX).The OVX, or "Oil VIX," measures the market's expectation of 30-day volatility of crude oil prices by applying the well-known CBOE Volatility Index (VIX) methodology to options on the United States Oil Fund, LP (ticker symbol USO), spanning a wide range of strike prices.Information on OVX will be disseminated daily through CBOE's website, as well as through all major data vendors.
The United States Oil Fund is an exchange-traded security designed to track changes in crude oil prices.By holding near-term futures contracts and cash, the performance of the Fund is intended to reflect, as closely as possible, the spot price of West Texas Intermediate light, sweet crude oil, less USO expenses.
CBOE began trading USO options on May 9, 2007.In just over a year, USO options have grown to become one of the most actively traded options contracts, averaging more than 50,000 contracts per day, industry-wide, in the most recent calendar quarter.At CBOE, year-to-date volume through the first six months of 2008 was one million contracts traded.
With the introduction of OVX, the first commodity-based Volatility index, CBOE embarks on the next generation of Volatility benchmarks, extending the Exchange's franchise to new, non-equity asset classes.In the coming months, CBOE plans to develop Volatility indexes based on other commodities (e.g., gold) and foreign currencies.CBOE currently publishes data on nine different Volatility-related benchmarks and strategies, including: the CBOE Volatility Index, which is based on the S&P 500 Index, (VIX), the CBOE DJIA Volatility Index (VXD), the CBOE Nasdaq Volatility Index (VXN), the CBOE Russell 2000 Volatility Index (RVX), the CBOE S&P 100 Volatility Index (VXO), the CBOE S&P 500 3-Month Volatility Index (VXV), the CBOE VIX Premium Strategy Index (VPD), the CBOE Capped VIX Premium Strategy Index (VPN), and the CBOE S&P 500 VARB-X Strategy Benchmark (VTY).
For a complete overview of the CBOE Crude Oil Volatility Index, including methodology and historical prices dating back to May 10, 2007, visit www.cboe.com/OilVIX.
CBOE, the largest options marketplace in the U.S. and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC).For additional information about the CBOE and its products, access the CBOE website at: www.cboe.com/.
CBOE®, Chicago Board Options Exchange®, CBOEdirect®, CBOE Volatility Index®, VIX®, CBOE Nasdaq Volatility Index®, VXN®, CBOE S&P 100 Volatility Index®, VXO®, CBOE S&P 500 3-Month Volatility Index, XEO® and OEX® are registered trademarks of Chicago Board Options Exchange, Incorporated. SPXSM, XSPSM MNXSM, CBSXSM and CBOE Stock ExchangeSM are service marks of Chicago Board Options Exchange, Incorporated. CFESM and CBOE Futures Exchange are service marks of CBOE Futures Exchange, LLC. Dow Jones®, DJIA®, and DIAMONDS® 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. S&P®, S&P 100®, S&P 500®, and SPDR 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. The Russell 2000® Index is a registered trademark of The Frank Russell Company used under license.Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and Nasdaq-100 Index Tracking StockSM are trademarks of The Nasdaq Stock Market, Inc. iShares is a service mark of Barclays Global Investors, N.A. "HOLDRS" and "Holding Company Depositary ReceiptS" are service marks of Merrill Lynch & Co., Inc.
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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.