Chris Concannon, CBOE Holdings
London - CBOE Holdings has announced plans to expand its suite of product offerings tied to S&P Dow Jones Indices with the planned launch of options on the 10 S&P Select Sector Indices that comprise the S&P 500, a key benchmark of the U.S. equities market.
CBOE Select Sector Index options provide market exposure to U.S. equity sectors represented in the S&P 500. In particular, European investors who cannot currently hold options on exchange-traded funds (ETFs) due to obstacles presented by certain European regulations will be able to implement sector- investment strategies popular with U.S. investors. The new options offer all investors the benefits of cash settlement, with third-Friday (monthly) expirations and European-style exercise, similar to CBOE's S&P 500 options.
Pending regulatory approval, the options are expected to be exclusively listed on Chicago Board Options Exchange, the largest of CBOE Holdings' four options exchanges, and are expected to launch in late fourth-quarter 2017 or early 2018.
CBOE Holdings President and Chief Operating Officer Chris Concannon said: "We are excited that we will be able to provide exposure to these key U.S. sector indices for European customers who have been keen to incorporate U.S. sector investing strategies into their portfolios, but have not had access to an efficient trading vehicle to realize this strategy."