• Jun 30, 2020, 12:11 PM

    Inside Volatility Trading: June 30, 2020

    Inside Volatility Trading: June 30, 2020

    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[...]

  • Jun 17, 2020, 1:26 PM

    Introducing Cboe Quote Depletion Protection

    Introducing Cboe Quote Depletion Protection

    On Wednesday, June 10, Cboe introduced the new Quote Depletion Protection (QDP) enhancement for use with our Midpoint Discretionary Order (MDO). Eugene Davidovich, Head of U.S. Equity Sales and Account Coverage, recently reached out to clients, detailing how QDP may enhance trading outcomes. Learn more about the potential benefits of MDOs and QDP below. MDOs allow participants to post displayed or non-displayed liquidity at the National Best Bid or Offer (NBBO) with discretion to execute up to[...]

  • Jun 16, 2020, 5:30 PM

    The 32nd Annual Russell Index Reconstitution Explained

    The 32nd Annual Russell Index Reconstitution Explained

    FTSE Russell Indexes are reconstituted over a multi-week process in accordance to its benchmark methodology on an annual basis. The reconstitution reflects changes from the preceding year by adding and removing shares of companies to the U.S. Russell Indexes. Approximately 98% of the listed U.S. equity market is represented by the widely followed Russell 3000 Index which includes the subset benchmarks Russell 1000 Index (large-caps) and Russell 2000 Index (small-caps). The 2020 Russell Reconstitution[...]

  • Jun 16, 2020, 10:36 AM

    Inside Volatility Trading: June 16, 2020

    Inside Volatility Trading: June 16, 2020

    The Rally We Love to Hate On a recent Microsoft Teams call with my work teammates, I inquired about everyone’s weekend. The ask was not superficial, because I was curious to know if everyone ventured out as much as I had. Until most recently when some states began easing their Stay-at-Home orders, it had become increasingly difficult to recall the days of the week by name. At times it felt as if days bled into weeks and months. That can happen when a global pandemic confines you to your house[...]

  • Jun 11, 2020, 5:29 PM

    Preparing to Reopen Cboe’s Trading Floor on Monday, June 15

    Preparing to Reopen Cboe’s Trading Floor on Monday, June 15

    The Cboe Global Markets team is looking forward to reopening our trading floor Monday.  This decision was not made lightly. The health and safety of our trading floor community -- which includes Cboe associates and Trading Permit Holders, or TPHs (the firms that conduct trading on our floor) -- guided our decision to temporarily close the floor as well as our plans for its reopening.  Developing and executing our safety-first plans was an incredible companywide lift. Our team has redefined[...]

  • Jun 8, 2020, 5:30 AM

    An Update From Cboe Europe President David Howson, June 2020

    An Update From Cboe Europe President David Howson, June 2020

    David Howson, President, Cboe Europe, reached out to European customers at the start of June with an update on the current market environment. Read his letter below. Dear Clients and Members of the Trading Community, I hope everyone continues to stay safe and well during these unprecedented times. I promised in my first update in April that I’d be in touch with you all more often, so this is me making good on that promise! Working remotely has also reinforced the importance of regular communication[...]

  • Jun 3, 2020, 2:31 PM

    Federal Reserve Bank’s “Whatever it Takes” Response Impacts U.S. Small-Caps

    Federal Reserve Bank’s “Whatever it Takes” Response Impacts U.S. Small-Caps

    In an effort to impede the further spread of the novel coronavirus (COVID-19), decisions were made to shudder “non-essential” workplaces pushing millions into the unemployment system that wreaked havoc on a wide swath of American businesses.  The U.S. stock market’s subsequent sell-off arguably impacted the Federal Reserve Bank’s (FRB) decision to make the following announcement on March 23 stating that it was ”…committed to using its full range of tools[...]

  • Jun 2, 2020, 12:11 PM

    Inside Volatility Trading: June 2, 2020

    Inside Volatility Trading: June 2, 2020

    So Many Roads Twenty-five years ago (6/2/1995) the Grateful Dead began what would prove to be their final stand at the Shoreline Amphitheater. The Grateful Dead cultivated an exotic and far flung following. There was nothing standardized about their creative approach and it paid off. In the mid-90s, options were still generally considered to be niche tools used by some eccentric types. Similarly, The Dead were stereotyped as an unusual band without broad appeal, despite a considerable and devoted[...]

  • May 27, 2020, 5:37 PM

    Getting to Know Michael Izhaky, Cboe's Newest Leader by Acquisition

    Getting to Know Michael Izhaky, Cboe's Newest Leader by Acquisition

    At the beginning of February, Cboe acquired options and volatility analytics firm FT Options to further build out our Information Solutions offering. FT Options offers a suite of customizable, automated, integrated applications that provide research and analytics functionality across options, futures and light exotics for proprietary trading firms, hedge funds and separately managed accounts. We talked to the company's founder, Michael Izhaky, about his background, how he built FT Options[...]

  • May 21, 2020, 8:29 AM

    How to Enhance Order Execution During High Volatility

    How to Enhance Order Execution During High Volatility

    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[...]

  • May 19, 2020, 12:39 PM

    Inside Volatility Trading: May 19, 2020

    Inside Volatility Trading: May 19, 2020

    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[...]

  • May 14, 2020, 9:36 AM

    Getting to Know Jerry Hanweck, Cboe’s Newest Leader by Acquisition

    Getting to Know Jerry Hanweck, Cboe’s Newest Leader by Acquisition

    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[...]

  • May 6, 2020, 12:26 PM

    Inside Volatility Trading: May 6, 2020

    Inside Volatility Trading: May 6, 2020

    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[...]

  • May 1, 2020, 3:49 PM

    In Case You Missed It: Monthly Highlights from Cboe

    In Case You Missed It: Monthly Highlights from Cboe

    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[...]

  • Apr 29, 2020, 2:57 PM

    What to Know about the Cboe and FTSE Russell Combination

    What to Know about the Cboe and FTSE Russell Combination

    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[...]