In Case You Missed It: August 2021
Cboe Global Markets® Reports July 2021 Trading Volume
Cboe® reported July 2021 trading volume on August 4. In July, total volume in Russell 2000® Index (RUTSM) options reached nearly 1.2 million contracts traded with 56,054 contracts traded on average per day. S&P 500® Index (SPX®) options had the highest monthly average daily volume (ADV) for the year and the average daily notional value (ADNV) in Non-Deliverable Forwards (NDFs) transacted on Cboe SEF reached $369 million.
Cboe IBHY Futures Set All-Time Monthly Volume Record, Surpassing $5 Billion Total Monthly Notional Value Traded for First Time
On August 4, Cboe announced that trading volume in Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index (IBHY) futures reached an all-time monthly high in July 2021 and surpassed $5 billion in total notional value traded for the first time. A total of 39,919 contracts were traded during the month, representing approximately $5.9 billion in notional value, up 52 percent over the prior month.
The QDP Difference
In a recent analysis, Cboe’s Oliver Sung, Senior Director, Equities Execution Consultant, provides a detailed explanation of current use cases for Cboe’s Quote Depletion Protection (QDP) and shares an in-depth look at the order type’s recent performance. QDP is a patent-pending, options instruction that market participants can use in conjunction with Midpoint Discretionary Orders (MDOs) on Cboe EDGX® and EDGA® Equities Exchanges.
Cboe Statement on Passing of Wayne Luthringshausen
On August 13, Cboe issued a statement from Ed Tilly, Chairman, President and CEO, on the passing of Wayne Luthringshausen, retired Chairman and CEO of the Options Clearing Corporation (OCC). Cboe honored Luthringshausen with a moment of silence on its trading floor before the market open on Monday, August 16.
Cboe Global Markets Declares Increased Third-Quarter 2021 Dividend
On August 19, Cboe announced its Board of Directors declared an increased quarterly cash dividend of $0.48 per share of common stock for the third quarter of 2021. The increase represents a 14% increase from the prior quarter’s dividend of $0.42 per share.
Cboe Advocates for Targeted Equity Market Structure Reform
Cboe’s Market Policy and Government Affairs (MPGA) team published a paper outlining the company’s vision for targeted equity market structure reform. The paper outlines five key recommendations, highlighting Cboe’s belief that certain current rules and regulations in the U.S. equities markets are outdated and should be updated to fully align with modern markets.
Cboe Futures ExchangeSM to List AMERIBOR® Term-30 Futures on September 13, 2021
On August 23, Cboe announced plans to launch futures on the AMERIBOR® (American Interbank Offered Rate) Term-30 interest rate benchmark. The AMERIBOR Term-30 benchmark, disseminated by the American Financial Exchange (AFX™), is designed for financial institutions in need of forward-looking short-term interest rates as the planned cessation of LIBOR approaches. The benchmark is designed to capture wholesale funding costs for American financial institutions over a thirty-day period at a specific moment in time. The futures are expected to be available for trading on Cboe Futures Exchange (CFE®) on Monday, September 13, subject to regulatory review.
Inside Volatility Trading: A Day, A Week, A Year, A Decade
In this month’s edition of Inside Volatility Trading, Kevin Davitt, Senior Instructor, Cboe Option’s Institute, discussed how traders and investors think about years versus decades, the history of changes in the VIX® Index and derivatives as risk management tools.
A Cost-Effective Way to Trade Options on the Russell 2000® Index
Eric Zaba, a summer 2021 Derivatives Sales Intern at Cboe, analyzed the differences between trading Mini-Russell 2000 Index (MRUT) options and iShares Russell 2000 (IWM) exchange traded fund (ETF) options. Using the same hypothetical trade for each, Zaba demonstrated that it is more capital efficient to trade Mini-Russell 2000 Index options than iShares Russell 2000 ETF options.
Cboe DataShop Unveils Updated Website
Cboe DataShop, the industry’s one-stop shop for equity, options, futures and index data, recently unveiled an improved web experience with several upgrades. These upgrades include a streamlined checkout process, enhanced search functionality and new insights through trending data sets.
Pathways to ETFs for Mutual Fund Managers
Transitioning mutual funds to ETFs is a growing strategy across the U.S. fund industry. To help mutual fund managers determine the best path forward for their business, Cboe and the Investment Company Institute gathered a panel of experts to discuss all aspects of the process, from regulation and back-office operations to capital markets, marketing and distribution. A recap of the webinar and the full replay are available on Cboe Insights.
The Lasting Results of an Unprecedented Market Environment
Jeff Nguyen, a summer 2021 North American Equities intern at Cboe, analyzed displayed and non-displayed market centers between the first quarter of 2020 and the second quarter of 2021. In the analysis, Nguyen also highlights several new market microstructure trends that the Cboe Equities Execution Consulting team observed during the first year of the pandemic.
The information in this article is provided for general education and information purposes only. No statement(s) within this article should be construed as a recommendation to buy or sell a security or to provide investment advice. Supporting documentation for any claims, comparisons, statistics or other technical data in this article is available by contacting Cboe Global Markets at www.cboe.com/Contact. Cboe is a registered trademark of Cboe Exchange, Inc. All other trademarks and service marks are property of their respective owners. © 2020 Cboe Exchange, Inc. All Rights Reserved.
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of “Characteristics and Risks of Standardized Options.” Copies are available from your broker or from The Options Clearing Corporation at 125 South Franklin Street, Suite 1200, Chicago, IL 60606 or at www.theocc.com Futures trading is not suitable for all investors and involves the risk of loss. That risk of loss can be substantial and can exceed the amount of money deposited for a futures position. You should, therefore, carefully consider whether futures trading is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding futures trading risks, see the Risk Disclosure Statement set forth in Appendix A to CFTC Regulation §1.55(c) and the Risk Disclosure Statement for Security Futures Contracts. Past Performance is not indicative of future results.