Cboe Blogs

In a recent note to clients, Adam Inzirillo, Head of North American Equities, shared what drove Cboe's decision to update the CboeEDGX® Early Trading session hours, along with some recent volume updates.  Effective Monday, December 7, the EDGX Early Trading session will begin at 4 a.m. ET. The reason we made this change is simple: we heard you. We take customer feedback seriously, so when we heard calls for earlier trading, we looked for a way to make it happen. In addition to seeing[...]

As any exchange, brokerage or asset manager will tell you, there is inherent risk in investing. But what if you could minimize that risk and target returns? It may sound too good to be true, but that’s the concept behind Cboe’s Target Outcome Indices. Target Outcome Indices are options-based strategy benchmarks designed to provide targeted returns relative to a referenced U.S. domestic stock market index, and in the case of buffer protect strategies, to limit downside risk. Cboe’s[...]

When we notice a new trading trend, we look for ways that we can improve our exchanges to better fit the way our customers use them. As closing auctions become an increasingly important part of the trading day, we wanted to uncover ways to enhance end-of-the-day trading for market participants. In our latest analysis, we explore how closing auction events impact volumes, and share how upcoming changes to the close on Cboe’s BZX exchange may benefit participants. Closing Time The opening and[...]

I had this crazy idea Somehow we coast to the end The change lies in every direction So now I guess we’ll just begin again Okay. So…. Now what? Heraclitus is a lesser-known Ancient Greek philosopher. He predated Socrates and led a distinguished life. He was one of the first process philosophers and focused on the concept of change, or becoming. Heraclitus observed that nature is in a constant state of flux. He’s believed to have said “the only constant in life[...]

“Political conflicts are merely surface manifestations. If conflicts arise you may be sure that certain powers intend to keep this conflict under operation since they hope to profit from the situation. To concern yourself with surface political conflicts is to make the mistake of the bull in the ring, you are charging the cloth” -William S. Burroughs The Tipping Point? Twenty years ago, Malcolm Gladwell went from a respected writer for The New Yorker to a sought after “public intellectual”[...]

In October, 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 November for our next monthly update. Cboe FX Launches Cboe Swiss On October 1, Cboe FX announced the launch of Cboe Swiss, a new platform designed to open unique liquidity opportunities for our clients in the global non-deliverable forwards (NDF) market. As electronification[...]

2020: The Clash Should I stay or should I go now? Should I stay or should I go now? If I go there will be trouble And if I stay it will be double So ya gotta let me know The Clash   Markets are fundamentally driven by supply and demand. In general, a well-supplied market will push prices lower, all else constant, and vice versa. Derivative markets, particularly the implied volatility of option values, are reflective of the overall supply/demand dynamic at a given point in time. A shortage[...]

The 2020 U.S. presidential election is projected to be unlike any other in recent history, and the market is responding accordingly. Historically, expected volatility has climbed higher in the months leading up to Election Day, but in 2020, that expected volatility has been driven significantly higher than in election years past. Check back here for the latest insights on market reaction to the November 3 election from Cboe™ experts. Analysis from Inside Volatility Trading Insights from Cboe’s[...]

And I rose In rainy autumn And walked abroad in a shower of all my days. High tide and the heron dived when I took the road        Over the border            And the gates Of the town closed as the town awoke.    A springful of larks in a rolling Cloud and the roadside bushes brimming with whistling    Blackbirds and the sun of October Dylan Thomas If 2020 was a marathon, U.S. readers are approaching mile 20. For our global audience,[...]

How many equity destinations can you trade on? This month, the industry has seen the launch of three new trading venues on top of the existing 13. While this number seems intimidating, increased competition may have some benefits for investors. Each market participant must allocate resources and determine how each market center benefits them. Those benefits depend on the type of flow each industry participant services. To further explore the current liquidity landscape, it is important to first[...]

Financial professionals interested in learning more about this topic are invited to join Cboe for a webinar on September 30. Learn more and register below. In August, the total market capitalizations for the MSCI EAFE Index and the MSCI Emerging Markets Index hit $14 trillion and $6.4 trillion, respectively. Additionally, the country weighting of China’s stocks in the MSCI Emerging Markets Index grew to 42.5% last month. Interest in managing global risk exposure has grown in recent years, and[...]

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[...]