2017 CBOE Risk Management Conference
Options Hub Blog
Edward Provost Remarks
Thursday, March 9, 2017
Day Two of CBOE RMC U.S. kicked off with bittersweet final remarks from CBOE’s Edward Provost, who officially retired as President and COO last week.
Provost began with the obvious: CBOE Holdings’ acquisition of Bats Global Markets. “We believe the CBOE-Bats combination will enable us to cement CBOE’s position as the go-to partner for developing cutting-edge trading and investment solutions,” he said. “We expect to provide customers like you with innovative products across a wide array of asset classes,” he continued.
The addition of Bats’ global products and listing and trading venues is expected to enable CBOE to create an ecosystem that encompasses every aspect of product development. Provost highlighted how the ability to develop, list and trade new products will allow CBOE to touch customers at different points along the product development and trading cycle. “We anticipate creating largely index-based ETPs and structured products,” he added. “We also expect those products to be increasingly global in nature.”
Along those lines, Provost touted the global utility of CBOE proprietary products in 2016. For example, record volume was set in CBOE Volatility Index (VIX) futures extended trading hours on U.S. election night in November – surpassing the previous record set during the June 24 overnight session, the night of the U.K.’s Brexit vote. Trading in SPX option volume reached a new all-time high for the fourth consecutive year in 2016 with an average daily volume that topped 1 million contracts for the first time in the product’s 33-year history.
Provost then acknowledged three CBOE major index provider partners in attendance -- S&P Dow Jones, FTSE Russell and MSCI -- emphasizing their role in creating new tools for trading at CBOE. “Embedded in our mission to provide global investors cutting-edge trading tools and investment solutions is our commitment to offer a broad range of educational, market data and trading resources,” he said.
Among some of those resources is CBOE Livevol. Provost highlighted the new CBOE Livevol Data Shop, which provides subscribers with customized data sets and subscriptions to standardized daily, monthly and annual options, and equity and ETF market data packages. Provost also discussed CBOE Vest, an asset management company that specializes in target outcome investment strategies.
“We believe the expertise of the Vest team, combined with CBOE’s proprietary product offerings and expertise in developing options-based strategy performance benchmarks, uniquely positions CBOE to lead the options space in target-based outcome investing and will serve as a model that can be repeated with other innovative asset managers and advisors,” he said.
In closing, Provost reminded the audience of CBOE’s longstanding commitment to expanding the options and volatility marketplace through investor education. “This is especially true now as we continue to develop new CBOE products, and as we expand into new asset classes and geographies with the close of the Bats deal,” he said.
Provost then lauded the success of CBOE’s second annual RMC Asia at the end of 2016, noting that attendance nearly doubled from the previous year. He also announced the 7th annual RMC Europe in Watford, England this September, concluding, “RMC affords us the unique ability to learn from and work closely with customers like you, which helps us create products and services that add power to your trading experience and expertise.”
The 33rd annual CBOE RMC U.S. is in full swing – follow coverage on Twitter with the hashtag #CBOERMC and check out www.cboermc.com throughout the conference for all of the latest news and highlights, including session blogs and CBOE TV video interviews.
The transcript of Edward Provost’s speech is available at http://www.cboe.com/aboutcboe/mediahub/speeches.aspx.
Certain information contained in this news release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.