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Cboe Blog

Cboe Global Markets, the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education.

  • Aug 12, 2019, 12:42 PM

    Worth Reading: Cboe’s Chief Policy Officer On the Dangers of the Current Exposure Method (via IFLR)

    Worth Reading: Cboe’s Chief Policy Officer On the Dangers of the Current Exposure Method (via IFLR)

    In a recent article for International Financial Law Review, Cboe’s Chief Policy Officer, Angelo Evangelou, detailed why the Current Exposure Method (CEM) – a methodology created to determine capital requirements for counterparty credit risk to derivatives in the U.S. – is harming liquidity provision in the options market. Angelo explains that because of CEM, banks in the options clearing business are unnecessarily incurring capital charges and makes the case for change. In the piece,[...]

  • Jul 26, 2019, 8:28 AM

    Fact | Exchanges Want to Give Public Investors a Fair Shot

    Fact | Exchanges Want to Give Public Investors a Fair Shot

    Cboe opposes the SEC’s Transaction Fee Pilot because we want to protect public investors from the harm it will cause. Bryan Harkins, Executive Vice President, Co-Head Markets at Cboe Global Markets, offers a counterargument to the opinion piece, “The SEC Wants to Give Public Investors a Fair Shot.” A recent Wall Street Journal opinion piece authored by Professor Larry Harris of the University of Southern California attempts to make the case for the U.S. Securities and Exchange[...]

  • Jul 10, 2019, 4:22 PM

    Inside Volatility Trading: July 10, 2019

    Inside Volatility Trading: July 10, 2019

    Insights with Kevin Davitt Cboe’s VVIXSM Index, which is an indicator of the expected volatility of the 30-day forward price of the Cboe Volatility Index (the VIX® Index), has garnered considerable attention in recent days. On Tuesday, July 2, the implied volatility of VIX options as measured by the VVIX fell below 76 for the first time since late February of 2019. For those unfamiliar, the VIX Index uses strips of S&P 500® Index (SPX) options to calculate a dynamic forward-looking[...]

  • Jun 11, 2019, 2:07 PM

    Inside Volatility Trading: June 11, 2019

    Inside Volatility Trading: June 11, 2019

    Stocks, Bonds and Volatility All Rise With Market Uncertainty Source: Yahoo! Finance A confluence of conflicting market news around tariffs, Fed action, and the weekly jobs report sent stocks, bonds and volatility all higher on Friday, June 7. It’s very uncommon for all three to rise at the same time. In fact, Friday, June 7 was only the third time in the last 10 years when volatility (as measured by VIX Index) rose on the same day that the S&P 500 was up more than 1% and bonds (as measured[...]

  • Jun 7, 2019, 4:18 PM

    Cboe Celebrates Medal of Honor Recipients with Opening Bell-Ringing Ceremony

    Cboe Celebrates Medal of Honor Recipients with Opening Bell-Ringing Ceremony

    Congressional Medal of Honor recipients and representatives from the Congressional Medal of Honor Foundation joined Cboe on Friday, June 7, for a special opening bell-ringing ceremony. Now in its 20th year, the Congressional Medal of Honor Foundation preserves the legacy of the Medal of Honor and supports the Congressional Medal of Honor Society and Medal of Honor recipients. The Medal of Honor is the highest award for valor that can be bestowed upon an individual serving in the Armed Forces. From[...]

  • May 28, 2019, 2:17 PM

    Inside Volatility Trading: May 28, 2019

    Inside Volatility Trading: May 28, 2019

    Hedge Funds Continue Building Short VIX® Positions While Retail Goes Long Sources: www.cftc.gov and Bloomberg In May, net leveraged money in VIX futures—assets predominantly managed by hedge funds—hit record short positions for 2019, while assets in global long VIX exchange-traded products—products predominantly owned by retail investors—continued to gather assets. VOLATILITY NEWS CNBC: Hedge Funds Bet the Sell-off is Over: 'Correction has Run its Course' [...]

  • May 24, 2019, 12:17 PM

    Cboe Analyst Wins Big at J.P. Morgan Corporate Challenge

    Cboe Analyst Wins Big at J.P. Morgan Corporate Challenge

    Quantitative analyst by day, Olympic-qualifying runner by night (or non-working hours, that is). Brett recently won the J.P. Morgan Challenge in Chicago, finishing the 3.5 mile race in 17 minutes and 26 seconds.  We chatted with Brett about his running career and the upcoming Olympic trials. Running has become a way of life for Brett Lustgarten, who started racing with his middle school cross country and track teams. He stuck with the sport through high school and at the University of Illinois,[...]

  • May 22, 2019, 9:54 AM

    Meet the Man Supporting Cboe Women

    Meet the Man Supporting Cboe Women

    Brian Schell was recently recognized by the Security Traders Association Women in Finance for his commitment to gender diversity and inclusivity with the Ken Heath Award. Brian joined his fellow award recipients to discuss the importance of gender diversity in the workplace. As Cboe’s Executive Sponsor of Diversity Initiatives, Brian works to support women in finance as he strives to continue Ken’s legacy. Growing up in a family of accountants, Brian Schell, Cboe’s CFO, imagined[...]

  • May 13, 2019, 2:08 PM

    Inside Volatility Trading: May 13, 2019

    Inside Volatility Trading: May 13, 2019

    VIX® Futures Term Structure Inverts in May Source: Cboe LiveVol Worries about a trade war with China sent the equity markets into a downturn in early May and the VIX Index saw a jump of almost 7 points in two trading days. The VIX futures term structure inverted on May 7, reflecting concern over near-term market risks. VOLATILITY NEWS MarketWatch: Why Stock-market Investors Fear Another 'VIX-driven Air Pocket' as Volatility Spikes  Bloomberg: What to Expect from U.S. Stocks[...]

  • May 1, 2019, 10:17 AM

    Inside Volatility Trading: April 29, 2019

    Inside Volatility Trading: April 29, 2019

    Steeper Term Structure; Growing Short Interest The VIX® futures term structure steepened in recent months attracting higher levels of short interest in long VIX futures strategies as represented by the iPath S&P 500 VIX Short Term Futures ETN (VXXB). VOLATILITY NEWS Bloomberg: It's a 'Golden Age' for Short-Volatility Trades Barron's: Stock Market Volatility is Quiet, for Now The Wall Street Journal: Traders Wager on Calm as Volatility Evaporates Bloomberg: Hedge[...]

  • Apr 22, 2019, 3:36 PM

    Anniversary Week at Cboe

    Anniversary Week at Cboe

    Friday marks Cboe’s 46th anniversary and we’re celebrating all week with some of our favorite memories and moments. Follow the fun with #Cboe46 on your preferred social platform, or check out our Instagram page for stories and opportunities to vote on your favorite Cboe button throughout the decades. Cboe Buttons Each year, we commemorate our beginnings by creating an anniversary button. Take a look at how they’ve changed throughout the years and vote for your favorite on[...]

  • Apr 17, 2019, 2:10 PM

    Inside Volatility Trading: April 17, 2019

    Inside Volatility Trading: April 17, 2019

    Cboe RMC Insights: 2019 U.S. Interviews Did you miss this year’s Cboe Risk Management Conference in Carlsbad, California? Watch our video series to hear insights from our panelists of top traders, strategists, and researchers on the latest volatility trading models, hedging techniques, and equity derivatives use cases. VOLATILITY NEWS Bloomberg: The Liquidity ‘Illusion’ Has These Funds Making Plans for a Stock Doomsday Bloomberg: JPMorgan Sees `Violent' Markets on[...]

  • Cboe RMC | Apr 8, 2019, 9:56 AM

    Cboe RMC Insights: 2019 U.S. Interviews

    Cboe RMC Insights: 2019 U.S. Interviews

    Did you miss this year’s Cboe Risk Management Conference in Carlsbad, California? Never fear, several of our panelists have provided their insights on what’s happening in the markets in the video series below. Go ahead, challenge yourself to think differently about portfolio management with the latest hedging techniques, equity derivatives use cases and volatility trading models.  To stay in the know, RMC you must go! The next Cboe RMC is September 9 through 11 in Munich, Germany.[...]

  • Apr 3, 2019, 5:05 PM

    Inside Volatility Trading: April 3, 2019

    Inside Volatility Trading: April 3, 2019

    Hedge Funds Building Short VIX Positions While Retail Goes Long Sources: www.cftc.gov and Bloomberg Net leveraged money in Cboe Volatility Index (VIX) futures—assets predominantly managed by hedge funds—began rebuilding short positions as equity markets recovered from late December losses. In contrast, leveraged long VIX exchange-traded products—assets predominantly owned by retail investors—started to trend higher in 2019. VOLATILITY NEWS The Wall Street Journal:[...]

  • Mar 27, 2019, 4:20 PM

    Cboe RMC Recap: Days Two and Three

    Cboe RMC Recap: Days Two and Three

    Did you read our summary of Day One? Don’t miss it! Day Two of the 35th annual Cboe Risk Management Conference was jam-packed with new information, engaging panels, networking opportunities and lots of finger food! Cboe Chairman, President and CEO Ed Tilly kicked off the day with an update on Cboe’s business and advocacy efforts. He also thanked Cboe VP of Research Bill Speth for his 24 years of “wisdom, guidance and friendship.” Bill retires this month after a legendary[...]