The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.
Symbol of Change
On May 1, CBOE changed the symbol for existing SPXPM options series to option symbol SPXW. As a result, CBOE is offering both SPX options with a.m. settlement, and SPXW options with p.m. settlement, on third Fridays of the month.
The conversion is designed to allow greater ease of access for those looking to place spreads from week to week. CBOE has received some very positive feedback from institutional investors on this change to the symbol SPXW.
The transition in the ticker symbol has resulted in an increase in volume for the S&P 500 options with p.m. settlement on third Fridays.
Average daily volume (ADV) increased from 8,298 for SPXPM options in April, to 30,845 for the SPXW options in June.
For more information, visit the CBOE Media Hub Blog.
Still Making Markets Better
Bats, a CBOE company, has from its genesis operated under the mantra of improving markets for all participants. Senior Vice President and Global Head of Exchange Traded Products, Laura Morrison, recently sat down with Fund Action to provide insights on Bats current initiatives in the ETF space, including growing market share, providing new tools for investors and partnering with issuers on marketing and education. .
“Bats ETF Chief Talks New Tools, Flash Crash Efforts” – Dervedia Thomas, Fund Action
VIX Fix: Volatility’s Tech Effect
On Wednesday, the Federal Reserve announced a quarter-point rate hike, the second increase this year, triggering the Dow Jones Index (Dow) to set yet another record high, closing at 21,375. Meanwhile, the CBOE Volatility Index (VIX) that covers the broader S&P 500 market, continued to remain low, but it was the CBOE Nasdaq 100 Volatility Index (VXN), which tracks options volatility in the tech sector, that captured investors’ attention. The Nasdaq 100 saw a two-day tumble, causing the VXN Index to spike over 20 before pulling back to the 16 levels. So for now, the overall market continues to remain calm, and for lovers or all things volatility, a little vol, is better than no vol at all.
“Market Fear Indicator Shows Historic Difference Between Nasdaq 100 and the S&P 500” – Alex Rosenberg, CNBC
“Expectations for Volatility on Tech-Heavy Nasdaq 100 Jump” – Adam Samson, Financial Times