Cboe Begins Trading in S&P 500® Equal Weight Index Options on April 14, 2025

Rhea-AI Summary

Cboe Global Markets (CBOE) has launched trading of S&P 500 Equal Weight Index (EWI) options on April 14, 2025. The new options, trading under ticker SPEQX, are based on 1/10th the value of the S&P 500 EWI, with each constituent allocated a fixed 0.2% weight quarterly.

The options are designed to complement Cboe's existing S&P 500 Index (SPX) options, offering investors additional diversification opportunities and exposure to different market dynamics. With a standard contract multiplier of $100, the notional value is approximately $63,200 as of April 7.

Key features include:

• Cash settlement with European-style exercise
• Trading hours from 9:30 a.m. ET to 4:15 p.m. ET
• Standard monthly options expiring on third Friday
• FLEX options availability
• Planned PM-settled weekly options pending regulatory approval

Positive

• Launch of new product expanding Cboe's derivatives offering
• Provides additional revenue stream through new options trading
• Addresses market demand for equal-weight exposure products
• Mid-sized notional value enables broader market participation

Negative

• Regulatory approval still pending for PM-settled weekly options
• Success depends on market adoption and trading volume

Insights

Derivatives Markets Analyst

Cboe's launch of S&P 500 Equal Weight Index (EWI) options represents a strategic product expansion that could generate incremental revenue growth while strengthening the company's competitive positioning in the index derivatives market.

The timing is particularly advantageous as the S&P 500 has become increasingly concentrated in mega-cap stocks, creating demand for more balanced exposure alternatives. By offering options on an index that equally weights all 500 components at 0.2% each, Cboe is addressing growing investor concerns about concentration risk while leveraging its established expertise in index options.

Several product design elements enhance its commercial potential: the mid-sized notional value (approximately $63,200) makes these options accessible to a broader range of participants; the cash settlement eliminates delivery concerns; and European-style exercise prevents early assignment complications. These features cater to both sophisticated institutional traders and retail investors seeking implementation flexibility.

This launch complements rather than cannibalizes Cboe's highly successful S&P 500 Index (SPX) options franchise, adding a differentiated tool that captures varying sector and factor exposures. The endorsements from Belvedere Trading as Lead Market-Maker and Piper Sandler suggest solid initial liquidity support.

While the revenue impact will ultimately depend on adoption rates and trading volumes, this product fills a logical gap in Cboe's index options ecosystem and strengthens its ability to benefit from increasing options usage for portfolio management. By expanding its S&P product suite, Cboe is reinforcing its position as the premier venue for U.S. equity index options trading.

CHICAGO, April 14, 2025 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced it has launched for trading S&P 500 Equal Weight Index (EWI) options. The new options are the latest addition to Cboe's S&P 500 toolkit and provide investors additional choice and diversification opportunity through broad-based U.S. equity market exposure.

The S&P 500 EWI (Bloomberg index ticker: SPW) is the equal-weight version of the S&P 500 Index, with each constituent of the S&P 500 EWI allocated a fixed weight of 0.2% of the index total at each quarterly rebalance. While including the same constituents, the S&P 500 EWI and the capitalization-weighted S&P 500 Index often differ in sector and factor exposures including smaller-cap vs. mega-cap stocks, momentum bias, and realized volatility.

The S&P 500 EWI options are designed to provide different exposure and complement Cboe's S&P 500 Index (SPX) options, which are one of the most actively traded and liquid options in the world. Market participants will be able to utilize the S&P 500 EWI options to make directional trades based on their views of macro trends and shifts in equity market dynamics and for additional hedging and income-generating opportunities.

"As investors turn to options at record levels to help manage U.S. equity market exposure and volatility, we are pleased to expand our S&P product suite with the launch of S&P Equal Weight Index options," said Catherine Clay, Global Head of Derivatives at Cboe. "We expect these options to cater to both retail and institutional investors looking to diversify and implement a variety of trading strategies, ultimately providing them greater choice and ability to tailor their exposure to fit their needs.  Investors are increasingly seeking to gain more balanced exposure across the market, and with the indexing expertise of S&P Dow Jones Indices and demand for the capitalization-weighted SPX options, the S&P 500 Equal Weight Index is ideally suited to underlie these new options."   

Megan Morgan, Head of Market Structure at Belvedere Trading, said: "The addition of S&P 500 Equal Weight Index options by Cboe is timely and we are excited for the opportunity to serve as the Lead Market-Maker. We have long found value in the S&P 500 Index ecosystem and Cboe's trading floor, and as the market evolves, more tools in the toolkit are always welcomed."

Danny Kirsch, Head of Options Trading and Strategy at Piper Sandler, said: "The performance of the S&P 500 Index relative to the S&P 500 Equal Weight Index has been a key topic in conversations around equity index exposure in recent years. By adding options on the S&P 500 EWI Index, Cboe is now allowing customers more ways to hedge risks and manage portfolios."

The S&P 500 EWI options are based on 1/10^th the value of the S&P 500 EWI (options ticker: SPEQX). With a standard contract multiplier of $100, the notional value of an S&P 500 EWI options contract would be approximately $63,200 as of market close on April 7. The mid-sized notional value potentially allows for a wider range of market participants to access the options. Similar to Cboe's other proprietary index options, S&P 500 EWI options are cash-settled and will have European-style exercise. Cash settlement eliminates concerns over physical delivery as profits and losses are settled as a debit or credit at expiration, and the European-style expiration removes the risk of early assignment and provides more certainty when implementing hedging strategies.  

On April 14, Cboe listed standard monthly options expiring on the third Friday. SPEQX options are available to trade during regular trading hours (RTH) between 9:30 a.m. ET and 4:15 p.m. ET. FLEX options are offered on SPEQX. Cboe plans to list PM-settled weekly options at a later date, pending regulatory approval. To learn more about the launch of the S&P 500 EWI options including additional contract specifications, visit here.  

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

Media Contacts			Cboe Analyst Contact
Angela Tu	Tim Cave			Kenneth Hill, CFA
+1-646-856-8734	+44 (0) 7593-506-719			+1-312-786-7559
atu@cboe.com	tcave@cboe.com			khill@cboe.com

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SOURCE Cboe Global Markets, Inc.

FAQ

What is the notional value of CBOE's new S&P 500 Equal Weight Index options?

The notional value is approximately $63,200 as of April 7, based on a standard contract multiplier of $100.

How are CBOE's S&P 500 Equal Weight Index options (SPEQX) different from regular SPX options?

SPEQX options are based on an equal-weight version where each S&P 500 constituent has 0.2% weight, versus SPX's market-cap weighting.

What are the trading hours for CBOE's new S&P 500 EWI options?

Trading occurs during regular trading hours (RTH) from 9:30 a.m. ET to 4:15 p.m. ET.

When will CBOE launch PM-settled weekly options for S&P 500 EWI?

PM-settled weekly options are planned for a later date, pending regulatory approval.

What settlement and exercise style do CBOE's S&P 500 EWI options use?

The options are cash-settled with European-style exercise, eliminating early assignment risk.