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.
Bats Index Franchise Expanding
On Tuesday, Bats Europe, a CBOE Holdings, Inc. company and the region’s largest equities exchange operator, announced it will expand its European index franchise with the planned launch of 18 new regional European benchmark indices.
The new indices, which are planned to launch on June 19, 2017, bring further choice to the index market in Europe, providing investors and market participants with a real-time, high-quality, low-cost alternative to existing benchmarks. The indices will allow users to easily and accurately compare market, region and sector performance across Europe.
Bats launched its index business in June 2016 and now offers 57 indices (calculated in both price and net total return) across 15 markets, including 25 national indices, five pan-European indices, one pan-Nordic index, 24 sector indices (12 UK sector indices, 12 European sector indices), and two Bats Brexit 50/50 Indices. A full list of Bats indices is available here.
“Bats Europe Expands Offering with Launch of 18 Regional Indices” – Tom Eckett, Investment Week
“Bats Unveils New Range of European Indices” – John Bakie, The Trade
“Bats Fires Latest Salvo in Exchange Index War” – Clare Dickinson, Financial News
“Bats Europe Launches New Regional European Indices” – Hedgeweek
CBOE-Bats Technology Integration Marches On
Also on Tuesday, CBOE held a customer conference call to announce the planned May 14, 2018 migration of the C2 Options Exchange to Bats technology. The C2 migration is the second scheduled exchange migration in a multi-year integration process. Earlier this year, CBOE announced CBOE Futures Exchange (CFE) would be the first market to switch to Bats technology. The CFE migration remains on track for its planned switchover of February 25, 2018. The final market to migrate will be Chicago Board Options Exchange. The date for CBOE’s migration to Bats technology will be announced later.
Also on the call, updates were provided on the CFE migration and the launch of the complex order functionality on the EDGX options exchange, planned for October 23, 2017. The planned CFE, C2, and CBOE migrations and the launch of a complex order book remain subject to regulatory review.
For materials related to the C2 migration, and to view the remarks and slides or to replay the webcast from the call, visit http://batsintegration.cboe.com/c2.
“CBOE Updates Tech-Migration Plan” – Rob Daly, Markets Media
“CBOE Holdings Announces Road Map of C2 Exchange Switch to Bats Technology” – Aziz Abdel-Qader, Finance Magnates
The Changing Face of Volatility
There was a lot of discussion about the CBOE Volatility Index (VIX) and the current volatility environment – or lack thereof – at this week’s Sandler O’Neill Global Exchange and Broker Conference in New York.
With the VIX Index “not closing above 13.75 for the past year, many in the industry are left scratching their heads wondering whether low volatility is the new reality for the U.S. equities market,” reports Rob Daly of Markets Media.
“Whenever something is the new norm, I know it is about to change,” Chris Concannon, CBOE Holdings President and COO, told attendees at the Sandler O’Neill event. He added, “I continue to hear that theme that this low level of volatility is the new norm. It’s not, and it’s going to change.”
“The Changing Face of Volatility” – Rob Daly, Market Media
“Stock Market Volatility Will Erupt Again – Trading Execs Warn” – Joe Rennison, Nicole Bullock, Financial Times
Replay the webcast of CBOE Holdings Chairman and CEO Ed Tilly and President and COO Chris Concannon’s fireside chat.