Cboe Blogs

As volatility increases in the broader equity markets, market experts have opined that the average cost of trading has also pushed higher. Using a simple trade impact model, this observation can be dissected into two main drivers: the appearance of wider spreads and an increased exposure to higher price volatility. Just by its nature, volatility can be expected to fluctuate over time and also during the course of the trading day. For example, the first hour of the trading day is typically associated[...]

Our days were long, our nights were longer Count the seconds, watch the hour Although we live on the US Dollar You and me we’ve got our own sense of time (Ezra Koenig/Vampire Weekend- Hannah Hunt) It’s been said countless times and there are constant reminders, but as Fed Chair Jerome Powell remarked on May 13, we’re living through a period "without modern precedent." We’re two months removed from nearly nationwide stay-at-home orders. The most populous county in the United[...]

At the beginning of February, Cboe acquired real-time analytics firm Hanweck to further build out our Information Solutions offering. Hanweck delivers real-time, high performance risk management analytics for banks, broker-dealers, hedge funds, clearing houses and exchanges. Hanweck’s offering ranges in services, from real-time options analytics to risk-based portfolio margin calculations, and across asset classes and regions. We talked to the company’s founder Jerry Hanweck about his[...]

It might be over soon, two, two It might be over soon Where you gonna look for confirmation? So as I’m standing in the station It might be over soon….. Justin Vernon (22, A Million) Justin Vernon and his band Bon Iver put out their third studio album (winter) in late 2016. Their work is circuitous, dense, ever changing, and beautiful. Last year they finished the seasonal loop when they released (spring) “i, I.” Markets, at least from some perspectives, could be described[...]

Despite our “new normal,” April was a busy month at Cboe™, and we have plenty of updates and market innovations to share — starting with a new #CboeListed product and ending with some thought leadership from Ed Tilly. Follow us on Twitter for daily updates as we continue defining markets and check back here at the end of May for our next monthly update. The First Semi-Transparent ETFs List for Trading at Cboe On April 2, American Century Investments listed[...]

Cboe recently strengthened  its strategic relationship with FTSE Russell, a leading provider of market capitalization weighted indices, by extending its 2015 exclusive licensing agreement through 2030. As we look forward to the next decade of innovation with FTSE Russell, we’re looking back on the past five years of this great collaboration. Comparing the Russell 1000® Index and the Russell 2000® Index FTSE Russell provides benchmarks measuring the performance of the largest 3,000[...]

Sunday, April 26, marked the 47th anniversary of Cboe Global Markets’ founding. But this global pandemic has shown that even after 47 years, the core purpose of our business has not changed: we remain committed to providing a forum for investors to express their views on the market and manage their risk. The functionality of our markets is more important than ever in this period of unprecedented uncertainty. Each day, the impact of the COVID-19 virus all-too-vividly plays out in the cities[...]

David Howson, President, Cboe Europe, reached out to European customers at the end of April with an update on the current market environment. Read his letter below. Dear Cboe Europe Participants and Members of the Trading Community, I hope you’re all safe and well in these unprecedented times. I’m aware this is the first time I’ve communicated with you all in my new role, but it is something I will endeavour to do on a regular basis. While I would have liked this first update[...]

The importance of ESG, or Environmental, Social and Governmental, initiatives has grown rapidly within the past few years – especially in the finance industry. As Ed Tilly, Chairman, President and CEO, wrote recently, everyone has a role to play in sustainability. At Cboe, we are guided by our commitment to being better global citizens as we regularly seek new ways to reduce our environmental impact and give back to our local communities. We know we are part of a worldwide effort by companies[...]

Trying to make some sense of it all But I can see, it makes no sense at all Is it cool to go to sleep on the floor? Cause I don't think that I can take anymore Clowns to the left of me, jokers to the right Here I am, stuck in the middle with you -Egan/Rafferty Cboe’s Inside Volatility pieces attempt to illuminate the investment landscape through a unique lens whose filters include index options, history, geopolitics…and some music. To wit, 1973 was a monumental year in both the United[...]

These past few weeks have challenged us all, as the pandemic puts enormous pressure on our healthcare system and continues to undermine our economy. But if the last month has shown our industry anything, it is the importance of our capital markets. We are especially appreciative to regulators and industry participants for coming together to ensure that equity markets remain open and free to continue performing all necessary functions. Balancing this period of volatility while working remotely has[...]

We say this a lot, but that’s only because it’s true: everything we do is guided by our mission to improve the markets and provide a better experience. That is why we were so excited at the start of April when the Securities and Exchange Commission approved Cboe’s request to create a new listing rule that aligns Cboe’s ETF listing standards with the SEC’s ETF Rule (6c-11). This approval was a huge step forward in providing a more efficient and streamlined process for[...]

Am I protecting or breaking an oath For Sigma oasis, it’s neither and both You’re finally weightless, so take to the air Sigma oasis you’re already there You’re already there (Anastasio/Marshall/Herman) Sigma is the 18th letter in the Greek alphabet and there are three distinct notations. The Greeks developed an incredibly robust culture with advanced comprehension of the natural world including mathematics, medicine, and economics. Uppercase sigma (Σ) is used to denote[...]

The novel structure combines the liquidity and tax benefits of an ETF structure without revealing a fund’s underlying holdings. On April 2, 2020, American Century Investments listed two Semi-Transparent ETFs on Cboe. The innovative Cboe-listed ETFs are the first of their kind, revolutionizing investing and paving the way for a new category of ETFs. What’s the difference between an ETF and a mutual fund? It’s funny you should ask! Usually the best way to understand an ETF (or[...]

These are extraordinary times with great uncertainty for everyone. We hope that our Inside Volatility Newsletter provides you with useful insights and historical context to help you navigate this difficult period. On a personal note, we would like to express our gratitude to our amazing health care workers. These people are heroes. Period. End of story. They go to work and have no idea what’s in front of them. They are willing to put their work, caring for those impacted by COVID-19 and other[...]