Cboe Plans to Launch Trading in Mini S&P 500 Index (XSP) Options during Global Trading Hours, Beginning December 11
Cboe Global Markets plans to launch trading of Mini S&P 500 Index (XSP) options during Global Trading Hours (GTH) starting December 11, 2022. This move will expand Cboe's current offerings, which include SPX and VIX options, enabling nearly 24-hour trading on business days. The introduction of XSP options allows traders to manage their positions with more precision and flexibility, catering to the growing demand for cash-settled, smaller-sized contracts. In October, Cboe reported record trading volumes, with over 60.8 million SPX options contracts and 1.3 million XSP contracts traded.
- Launch of XSP options during GTH enhances trading flexibility and precision for investors.
- Increased trading volume: 60.8 million SPX contracts and 1.3 million XSP contracts traded in October, indicating strong demand.
- None.
- Enables customers to trade Mini S&P 500 Index (XSP) options nearly 24 hours, five days a week
- Adds to Cboe's existing offering of SPX options and VIX options and futures during Global Trading Hours (GTH)
- Ability to harness the cash-settled, smaller-sized S&P 500 index options during GTH will help enable traders to adjust positions around the clock with even greater precision and flexibility
CHICAGO, Nov. 4, 2022 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to launch trading in Mini S&P 500 Index (XSP) options during global trading hours (GTH), which will make the product available to customers nearly 24 hours every business day on Cboe Options Exchange, beginning December 11, 2022.
The planned launch will add to Cboe's existing offering of its flagship S&P 500 Index® (SPX) options and Cboe Volatility Index® (VIX®) options and futures during the GTH session. With the ability to trade all four products around the clock, market participants globally will have even more product choice to manage risk more efficiently, react to global macroeconomic events as they are happening and adjust their positions, no matter the hour of the day.
The offering of XSP options during GTH is Cboe's latest enhancement to further broaden customer access to the XSP product suite. In October, Cboe began listing XSP options with Tuesday and Thursday weekly expiring contracts to provide expirations on every business day of the week.
"Cboe's popular, cash-settled SPX options have long been the index option of choice for market participants around the world seeking to manage their U.S. equity exposure, hedge risk and generate income," said Arianne Adams, Senior Vice President, Head of Derivatives and Global Client Services at Cboe Global Markets. "As demand for Cboe's proprietary products continues to grow globally from both institutional and retail customers, the ability to also trade XSP options during GTH helps investors to harness the smaller-sized contract to execute trading strategies with even greater precision and flexibility on a nearly 24 hours-a-day, five days-a-week basis."
In U.S. time, Cboe's GTH session begins at 8:15 p.m. ET and runs until 9:15 a.m. ET the following morning. Regular trading hours (RTH) then run from the U.S. market open at 9:30 a.m. ET until the market close at 4:15 p.m. ET. For each Monday business day, trading in GTH begins Sunday evening at 8:15 p.m. ET. In addition, the RTH session is followed by a curb session for SPX and VIX options – an extra session for electronic trading to adjust, unwind, or close out trades from 4:15 p.m. ET to 5:00 p.m. ET, Monday through Friday.
Alongside SPX and VIX options, XSP options will trade during all three sessions. Similar to SPX options, Cboe will offer both standard monthly-expiring contracts and daily-expiring contracts for XSP options during all sessions.
At 1/10th the size of a standard SPX options contract, XSP options provide a more manageably sized contract and greater flexibility for new index options traders or traders looking to manage their notional exposure with greater precision. Like SPX options, XSP options also offer potentially favorable tax treatment1, European-style exercise (no early exercise) and cash settlement (no delivery or assignment of shares) at expiration.
SPX and XSP options are exclusively listed on Cboe Options Exchange and are among the most actively traded index options products in the world. Trading volumes have continued to hit all-time highs, as a new monthly record of 60.8 million SPX options contracts traded was set in October, up 88 percent from October 2021, with average daily volume (ADV) of 2.9 million contracts. More than 1.3 million XSP options contracts were traded in October, up 255 percent from a year ago, with ADV of 62,000 contracts.
For more information about Cboe's GTH session, please visit https://go.cboe.com/24x5.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX and digital assets, across North America, Europe and Asia Pacific. To learn more, visit www.cboe.com.
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1 Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including XSP, are entitled to be taxed at a rate equal to
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SOURCE Cboe Global Markets, Inc.
