Cboe, FTSE Russell Extend Licensing Agreement04.29.2020
Cboe Global Markets and FTSE Russell Extend Licensing Agreement Through 2030
· 10-year extension of Cboe’s U.S. exclusivity to offer trading in options on FTSE Russell Indices
· Continues Cboe’s successful FTSE Russell-based options franchise, and provides opportunity to potentially expand product suite
· Agreement is extension to successful index collaboration that originated in 2015
CHICAGO – April 29, 2020 – Cboe Global Markets, Inc. (Cboe: CBOE), one of the world’s largest exchange holding companies, today announced it has signed an exclusive licensing agreement with FTSE Russell that extends Cboe’s rights to develop and list index options products based on FTSE Russell global indices through 2030. The extended partnership enables Cboe to continue its successful FTSE Russell-based options franchise and provides opportunity for Cboe to further expand its product suite and create additional trading opportunities for investors.
Under the renewed agreement, initially signed in 2015, Cboe will continue to have exclusive rights in the U.S. to offer trading in options on the widely followed Russell 2000® Index (RUT), Russell 1000® Index (RUI), Russell 1000® Style (Growth (RLG) and Value (RLV)) Indices for the next 10 years. Cboe also intends to collaborate with FTSE Russell to drive greater volume and liquidity through expanded product offerings, including the potential for new options on nearly two dozen additional FTSE Russell indices, subject to regulatory review, education, content and services for customers and market participants.
Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, said: “We are pleased to extend our relationship with FTSE Russell. This is a strategically important agreement that provides Cboe significant extension of our exclusivity and the runway to continue investing in our relationship and product set with FTSE Russell. We look forward to our strengthened collaboration, combining FTSE Russell’s leading indices with Cboe’s derivatives expertise, to create opportunities to further expand our universe of index options in the years to come.”
Waqas Samad, CEO of FTSE Russell Indexes and Group Director, Information Services, LSEG, said: “We’re excited to renew our successful relationship with Cboe Global Markets for another decade, building on the past five successful years. The depth, breadth and quality of FTSE Russell global indexes combined with the derivatives reach, reputation and commitment to education of Cboe Global Markets is a powerful combination for our clients. This is particularly true now during a time of market volatility, when investors can benefit more than ever from index-based options strategies.”
FTSE Russell indices are among the largest and most widely used by investors in the U.S., and U.S. ETFs tracking FTSE Russell comprise some of the most actively traded globally. Index-based cash-settled options on the FTSE Russell indices may serve as valuable investment tools for investors to gain efficient exposure to U.S. and global equity markets, manage risk and volatility, and enhance yield.
In 2019, average daily volumes for FTSE Russell index-based options traded at Cboe were approximately 40,000 contracts with total open interest standing at over 500,000 contracts at year end. Options on the Russell 2000® Index (RUT) were first offered at Cboe in 1992, and continue to be one of the five most liquid cash-settled equity index options listed in the U.S.
For additional information on Cboe’s FTSE Russell index options, visit http://www.cboe.com/FTSERussell.
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