Cboe Blogs

Insights from the Options Institute   Genuine day will come When the wind decides to run And shakes the stairs that stab the wall And turns the page in a future age Some trees will bend and some will fall But then again so will us all Let’s turn our prayers into outrageous dares And mark our page in a future age Wilco – Jeff Tweedy Sometimes it helps to go back before you try to move forward. We know a lot about the past and it can be instructive about the future. Before we run afoul[...]

The Canadian equity trading landscape has evolved over the past decade, leading to the rise of dark pools, inverted venues, minimum guaranteed fill facilities and asymmetrical speed bumps. Client demand and the difficulty in sourcing blocks within a fragmented marketplace led MATCHNow to launch Conditional Trading in January 2019. Firms up rates in the high 90% range coupled with the inherent cost savings of a midpoint block are proving to be valuable factors in reducing overall trading costs for[...]

Today, Cboe Global Markets™ launched cash-settled options on the S&P 500 ESG Index (ticker: SPESG). The S&P 500 ESG Index is designed to align investment objectives with environmental, social and governance (ESG) values, and the new index options are a potential tool for investors to implement hedging, risk management, income enhancement and asset allocation strategies. Let’s take a look at some recent findings and trends with ESG investing. Growth in ESG Investment Mandates According[...]

Financial professionals interested in learning more about this topic are invited to join Cboe for a webinar on September 16. Learn more about how to register below. Record volatility in early 2020 along with potential heightened uncertainty around the U.S. presidential election, the ongoing COVID-19 pandemic and other concerns have increased interest in harnessing tradable volatility products to manage risk. Let’s see what the VIX futures term structure and other benchmark indices tracking[...]

There’s fire all around But this is all illusion I’ve seen better days than this one I’ve seen better nights than this one Tension is rebuilding Something’s got to give Something's got to give Beastie Boys – Check Your Head It’s difficult to make sense of the world today, but uncertainty (i.e. volatility) is a constant. Accepting that reality can be very empowering. The relative degrees of ambiguity waxes and wanes. Without moving into some watered down new-age[...]

“The stock market isn’t the economy. The economy is production and jobs, and there are shortfalls in virtually every sector of the economy.” -Janet Yellen (Washington Post) In a previous Inside Volatility we highlighted the French Revolution and the potential shifting of volatility regimes. In Charles Dickens' magnum opus, A Tale of Two Cities, he documents the French Doctor Manette after his years of imprisonment during the Reign of Terror. The novel’s beginning is an interesting[...]

You got my heart, you got my soul You got the silver, you got the gold You got the diamonds, from the mine Well that’s alright It’ll buy some time -The Rolling Stones “You’ve Got the Silver” Cboe® is excited to announce the launch of the Mini Cboe Volatility Index (Mini VIX™) futures as of August 10. The Bloomberg ticker is VXLA. The smaller sized futures contract has a $100 multiplier as opposed to the $1000/point inherent in the standard contract. These contracts[...]

With so many different trading metrics and order types available, it can be difficult to effectively navigate the significance of each, especially during times of heightened volatility. When it comes to exchange-traded funds, or ETFs, seemingly small trading factors can have a big impact on the overall investment. Here are a few tips to help you navigate the ETF space. Mind Your Order Type Usage Order-type usage is one of the most basic and easily implemented methods to consider. Many investors automatically[...]

Cboe Futures Exchange (CFE®) launched trading in Mini Cboe Volatility Index® futures (VXMSM) on Monday, August 10.  The increased volatility in 2020 amplified interest in the Cboe Volatility Index (VIX®) and related products, driving demand for a new addition to the VIX Index suite. We’ve compiled a list of features that may help investors better understand the VIX Index and the new Cboe Mini VIX futures. Before reading further, it’s important to note: Mini VIX™[...]

In July, we acquired pan-European clearinghouse EuroCCP, announced plans for Mini VIX futures, shared market insights and more. Follow us on Twitter for daily updates as we continue defining markets and check back here at the end of August for our next monthly update. Cboe Acquires EuroCCP Cboe started July strong, completing its acquisition of EuroCCP on July 1, and announcing plans to launch Cboe Europe Derivatives in 2021. The acquisition brings together two companies that have long championed[...]

They say ev’ry man needs protection They say ev’ry man must fall Yet I swear I see my reflection Some place so high above this wall Bob Dylan – I Shall Be Released On July 28 of 1794, Maximilien Robespierre was executed by guillotine in Paris during the Reign of Terror. Robespierre was one of the most influential leaders of the Jacobins during the French Revolution. The French were inspired by the American Revolution and other Enlightenment principles. His death arguably brought[...]

The fragmentation of equity markets has caused market centers to evolve in recent years, each with their own distinct characteristics. With 13 live public exchanges (soon to be 16), over 30 Alternative Trading Systems (ATS) — electronic trading venues that match buyers and sellers without displaying a public quote — and multiple other ‘off-exchange’ market centers, equity market participants have a slew of options for optimal execution. The variety of choice makes the decision[...]

Cboe acquired Trade Alert, a real-time alerts and order flow analysis service provider, at the beginning of June. We talked with Trade Alert’s founder, Henry Schwartz, about founding Trade Alert, the need for real-time information and why he’s excited to join Cboe. Henry Schwartz’s career has come full circle. The founder of Trade Alert and now Cboe’s Senior Director, Head of Product Intelligence, found his love for the options industry on Cboe’s trading floor[...]

Cboe’s robust equities risk management tools are designed to help you and your firm manage execution risk with ease. The new functionality offers three interrelated, complementary enhancements that together provide powerful and flexible risk management solutions at varying levels of granularity. MPID Level Risk Controls Members (or clearing firms acting on your behalf) can manage risk at the MPID level through Gross and/or Net Notional Risk Thresholds by receiving notifications when approaching[...]

Back Again So Soon? An early look at players in uniforms is an annual marketing ploy by the National Football League. Recently, marquee quarterback Tom Brady unveiled his new look with the Tampa Bay Buccaneers after twenty years of service for the New England Patriots. Source: National Football League The eventual hall of famer drew an equal amount of cheers and jeers from football fans. One fan, a well-known supermodel, shared her supportive reaction to the new uniform on social media by writing[...]