CBOE To Offer New Customized Option Pricing Service Through Market Data Express

   CBOE To Offer New Customized Option Pricing Service Through Market Data

CBOE market-making firms bring price quoting expertise to daily custom options
pricing service for the first time

PR Newswire

CHICAGO, Jan. 7, 2013

CHICAGO, Jan. 7, 2013 /PRNewswire/ --Chicago Board Options Exchange,
Incorporated (CBOE) announced today that its affiliate Market Data Express,
LLC (MDX) plans to launch the CBOE Customized Option Pricing Service (COPS) on
Monday, January 14. The new data service, which employs the market-making
expertise of CBOE's liquidity-providing community, offers subscribers
end-of-day indicative valuations for "customized" options such as FLexible
EXchange (FLEX) options and certain over-the-counter (OTC) options.

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COPS was designed in response to requests from institutional investors –
including mutual fund and hedge fund administrators and risk managers for
insurance companies and custodial banks -- that need to accurately price the
value of custom options held in their portfolios on a daily basis. Many of
these institutions are required by the U.S. Securities and Exchange Commission
(SEC) to produce daily funds reports for their customers -- measuring Net
Asset Value (NAV) of funds held in their portfolios -- by 4 p.m. Central time.
COPS may help institutional investors more efficiently manage this reporting

COPS differs from other valuation services, which typically price options only
by request, each using a single pricing model. By contrast, COPS, for the
first time, will rely on robust pricing models of multiple CBOE market makers
to help generate indicative values for as many as 3,000 options series on 300
underlying options classes each day. MDX will average the valuations submitted
by market makers to MDX after the market close and provide COPS subscribers
with custom data based on those averages each day.

"We are pleased to introduce our new options valuation service, which is
unlike any other," CBOE President and COO Edward Tilly said. "CBOE's market
makers continuously quote hundreds of thousands of standard options series
each day. COPS is unique in that it applies this quoting expertise in
standard options to customized options. The result is options values
representing the collective pricing opinions of multiple, professional market

Initially, Wolverine Trading, Spot Trading and Sumo Capital, which
collectively make options markets on nearly 2,000 options series at CBOE, will
participate in the COPS program. They will price:

  oAll open FLEX options positions. COPS will provide indicative prices for
    all existing FLEX options positions on all U.S. options exchanges. FLEX
    options are exchange-traded options that allow investors to customize
    basic option features including the contract size, expiration date,
    exercise style and exercise price.
  oOTC options. COPS will provide indicative prices for any OTC option
    requested by a customer as long as it has the same degree of customization
    as FLEX options, i.e., limited to plain vanilla options that have a
    customized strike price, expiration date and exercise style (American or
  oTheoretical option prices. COPS will provide theoretical prices for a
    series of options, which offer indications of potential options prices for
    options that have not traded and are often used by traders to evaluate a
    security. COPS theoretical options series valuations, with one to 15-year
    expirations, will offer long-dated implied volatility insight that may be
    particularly valuable to institutions that have long-term equity
    liabilities. COPS will provide theoretical prices for the following six
    index options: the S&P 500 Index option (SPX); Nasdaq 100 Index option
    (NDX); Russell 2000 Index option (RUT); Dow Jones Industrial Average Index
    option (DJX); S&P 400 MidCap Index option (MID); and the MSCI EAFE Index
    ETF option (EFA). The strike prices and premiums for these options will
    be expressed in percentage terms, allowing subscribers to make simple
    day-to-day comparisons.

For more information on COPS, see www.cboe.com/COPS.

About CBOE:

CBOE, the largest U.S. options exchange and creator of listed options,
continues to set the bar for options and volatility trading through product
innovation, trading technology and investor education. CBOE offers equity,
index and ETF options, including proprietary products, such as S&P 500 options
(SPX), the most active U.S. index option, and options and futures on the CBOE
Volatility Index (the VIX Index). Other products engineered by CBOE include
equity options, security index options, LEAPS options, FLEX options, and
benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE is home
to the world-renowned Options Institute and www.cboe.com, the go-to place for
options and volatility trading resources. CBOE is regulated by the Securities
and Exchange Commission (SEC), with all trades cleared by the OCC.


CBOE^®, Chicago Board Options Exchange^®, Flexible Exchange^®, FLEX^®,
LEAPS^®, CBOE Volatility Index^® and VIX^® are registered trademarks, and
BuyWrite(SM), BXM(SM), COPS(SM), SPX(SM), and The Options Institute are
service marks of Chicago Board Options Exchange, Incorporated (CBOE).
Standard & Poor's^®, S&P^® and S&P 500^® are registered trademarks of Standard
& Poor's Financial Services, LLC and have been licensed for use by CBOE. All
other trademarks and service marks are the property of their respective


Website: https://www.cboe.com
Contact: Gail Osten, +1-312-786-7123, osten@cboe.com, or Gary Compton,
+1-312-786-7612, comptong@cboe.com; or Debbie Koopman, +1-312-786-7136,
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