CHICAGO, July 2, 2018 /PRNewswire/ -- Cboe Global Markets, Inc. ((Cboe: CBOE, NASDAQ:CBOE), one of the world's largest exchange holding companies, is celebrating the 35th anniversary of Cboe's S&P 500 Index options (SPXSM), the most actively traded index option in the U.S.
Thirty-five years ago, Cboe revolutionized the financial world with the introduction of options on broad-based stock indexes. On July 1, 1983, just 10 years after creating the listed options market, Cboe launched SPX options with posted volume of 350 contracts -- a sharp contrast with current-day volume of nearly 1.5 million contracts per day.
SPX options trading during the first half of 2018 experienced the most volume ever for the first two quarters of a year, with a total of 180,000,000 million contracts traded, representing over $453,000,000,000 billion of notional value. Further, year-to-date through June 2018 average daily volume is 15.8 percent ahead of last year's record volume pace.
Additionally in 2018, February saw new records set for total monthly volume and single-day volume with 34.6 million contracts and 3.2 million contracts (on February 9), respectively.
"We've seen tremendous growth since launching this product over three decades ago, and the recent records in SPX trading underscore investors' recognition of the incredible utility of S&P 500 Index options," said Ed Tilly, Chairman and Chief Executive Officer of Cboe.
"Cboe's SPX options are a globally important contract, used by investors both domestically and internationally looking to trade, hedge or gain exposure to U.S. equities," he continued. "Our ongoing collaboration with S&P Dow Jones Indices has allowed investors around the world to benefit from these highly efficient tools for managing risk."
Comprising 500 top U.S. listed companies, the S&P 500® is widely regarded as the leading indicator of the broader U.S. stock market and considered by many to be the best single gauge of large-cap U.S. equities.
"The capital markets are using the S&P 500 for a host of its transformative innovations ever since it launched in 1957, and index options are a prime example," said Alex Matturri, Chief Executive Officer, S&P Dow Jones Indices. "After 35 years alongside Cboe, one of the first partners of S&P DJI's global network of exchange relationships, we together remain committed to delivering transparent, cost-effective solutions for the global investment community."
Innovations Across the SPX Options Complex
Cboe is the exclusive home of S&P 500 Index options, and through the years, Cboe has created new products to enhance its expansive suite of S&P 500 Index products. In addition to the flagship SPX contract, Cboe's SPX product complex includes contracts with different expirations (Weeklys, third-Friday of the month, End-of-Month, End-of-Quarter and LEAPS), settlements (AM and PM), contract sizes (regular and mini) and trading hours (regular and global).
SPX Weeklys
Cboe innovated the options space again with the creation of SPX Weeklys in 2005, the first of their kind. These shorter-term options contracts empower investors to more efficiently trade options around specific news, such as economic data, earnings announcements or events. Cboe offers SPX Weeklys options with Monday, Wednesday and Friday expirations. In 2017, ADV for all SPX Weeklys series climbed to a record for a 10th consecutive year with nearly 695,000 contracts per day. Growth in SPX Weeklys has been driven by strong interest from retail investors.
SPX Mini Options
Also introduced in 2005, Cboe's mini-SPX options (XSP) offer the features of standard SPX options, but at 1/10th the contract size. With a manageable contract size that is a fraction of the cost of buying a basket of individual stocks, mini-SPX options provide additional flexibility and allow investors to efficiently gain broad-market exposure in a single trade. ADV in XSP options rose to a record of approximately 14,000 contracts per day in 2017.
Global Trading Hours
In March 2015, Cboe added a global trading hours session (from 2:00 a.m. to 8:15 a.m. CT) to complement regular trading hours (8:30 a.m. to 3:15 p.m. CT), making SPX options available for trading for 13 hours each day, Monday through Friday. Global trading hours enable investors around the world to use Cboe's SPX options to gain exposure to the broader U.S. stock market and more quickly react to world events, hedge positions and potentially capitalize on changes in volatility well before and after regular U.S. trading hours. Year-to-date through June 2018, SPX options ADV during global trading hours is 4,416 contracts per session, up from the 1,875 contracts per day in 2017.
Additional information on Cboe's SPX options can be found at www.cboe.com/SPX.
Learn more about the SPX this week at #SPX35 on Twitter and at www.cboe.com/blogs.
About Cboe Global Markets, Inc.
Cboe Global Markets, Inc. ((Cboe: CBOE, NASDAQ:CBOE) is one of the world's largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. The company is committed to relentless innovation, connecting global markets with world-class technology, and providing seamless solutions that enhance the customer experience.
Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), the world's barometer for equity market volatility.
Cboe's trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe. In addition, the company is the second-largest stock exchange operator in the U.S. and a leading market globally for ETP trading.
The company is headquartered in Chicago with offices in Kansas City, New York, London, San Francisco, Singapore, Hong Kong and Quito, Ecuador. For more information, visit www.cboe.com.
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Cboe®, Cboe Volatility Index® and VIX® are registered trademarks and Cboe Global MarketsSM, SPXSM and LEAPSSM are service marks of Cboe Exchange, Inc. S&P® is a registered trademark of Standard & Poor's Financial Services LLC. Any products that have the an S&P Index or Indexes as their underlying interest are not sponsored, endorsed, sold or promoted by Standard & Poor's or Cboe and neither Standard & Poor's nor Cboe make any representations or recommendations concerning the advisability of investing in products that have S&P indexes as their underlying interests. All other trademarks and service marks are the property of their respective owners.
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SOURCE Cboe Global Markets, Inc.
