CBOE Holdings, Inc., through its subsidiaries, operates as an options exchange and creator of listed options in the United States. The company's principal business is operating markets that offer for trading options on various market indexes (index options), mostly on an exclusive basis, and futures contracts, as well as on non-exclusive ‘multiply-listed’ options, such as options on the stocks of individual corporations (equity options) and options on other exchange-traded products, such as exchange-traded funds (ETF options) and exchange-traded notes (ETN options). The company operates three stand-alone exchanges. CBOE (Chicago Board Options Exchange, Incorporated) is the company’s primary options market and offers trading in listed options through a single system that integrates electronic trading and traditional open outcry trading on its trading floor in Chicago. This integration of electronic trading and traditional open outcry trading into a single exchange is known as its Hybrid trading model. CBOE Futures Exchange, LLC (CFE), the company’s all-electronic futures exchange, offers trading of futures on the VIX Index and other products. C2 is the company’s all-electronic exchange that also offers trading for listed options. All of its exchanges operate on its proprietary technology platform known as CBOE Command. Products The company’s exchanges provide a marketplace for the trading of options and futures contracts that meet criteria established in the rules of the respective exchange. The options contracts listed for trading include options on indexes, equities and exchange-traded products (ETPs). In addition, the company provides a marketplace for trading futures contracts through CFE. Types of products Index Options: The company offers trading in options on different broad-based market indexes, including the VIX Index, a proprietary index that the company developed. Equity Options: The company offers trading in options on the stocks of approximately 3,100 corporations. The stocks underlying its individual equity options are listed on equity stock exchanges. Options on ETPs: The company offers trading in options on approximately 500 ETFs and ETNs based on various domestic and foreign market indexes, as well as on volatility, commodities, currencies and fixed income instruments. Futures: The company provides a marketplace for trading 10 futures products through CFE. CFE focuses on the trading of futures using the CBOE-created VIX methodology, but also provides trading in S&P 500 Variance futures. Proprietary Products The company has developed its own proprietary indexes and index methodologies. These include volatility indexes based on various broad-based market indexes (such as the S&P 500, the Dow Jones Industrial Average (DJIA), the NASDAQ 100 and the Russell 2000), volatility indexes based on ETFs and individual stocks, the CBOE S&P 500 Implied Correlation Index and a series of options strategy benchmarks, including BuyWrite, PutWrite and Collar indexes based on the S&P 500 and BuyWrite indexes based on other broad-based market indexes. Strategic Relationships S&P 500 and S&P 100 Indexes: The company has the exclusive right to offer options contracts on the S&P 500 Index and the S&P 100 Index as a result of a licensing arrangement with S&P OPCO LLC, which was extended in 2013. The company’s license with S&P OPCO LLC is through December 31, 2033, with an exclusive license to trade options on the S&P 500 Index through December 31, 2032. The company is also authorized to use the S&P 500 Index and S&P 100 for the creation of CBOE volatility indexes, such as the VIX Index, and tradable products on those volatility indexes. DJIA: The company has the exclusive right during standard U.S. trading hours to offer options contracts on the DJIA and certain other Dow Jones indexes through December 31, 2017 as a result of a licensing arrangement with S&P Dow Jones Indices, LLC. The company is also authorized to use these indexes to create CBOE volatility indexes and trade options, futures and other products on these indexes. Russell Indexes: The company is able to offer options contracts on the Russell 2000 and certain other Russell indexes through February 28, 2015 as a result of a licensing arrangement with Frank Russell Co. The company is also authorized to create RVX, a volatility index based on the Russell 2000, and offer options, futures and other products for trading on this index. NASDAQ 100: The company has a non-exclusive right to offer options contracts on the NASDAQ 100 Index through December 2015 as a result of a licensing arrangement with NASDAQ OMX Group, Inc. Under this license, the company is authorized to create VXN, a volatility index on the NASDAQ 100, and offer options, futures or other products on this index. MSCI: In 2014, the company had entered into a license agreement with MSCI Inc., under which CBOE has the exclusive right in the U.S. to offer options on six of MSCI's indexes, including the MSCI EAFE Index and the MSCI Emerging Markets Index. Strategy The company expects to further expand its business and increase its revenues and profitability by pursuing the following growth strategies: pursue international opportunities; develop innovative proprietary products; offer compelling economic model; continue to enhance trading systems; increase the number of users of products; attract over-the-counter market participants; and pursue select strategic opportunities. Competition The company’s competitors include ISE, NASDAQ OMX NOM, NASDAQ OMX PHLX, NYSE Amex and NYSE Arca. History CBOE Holdings, Inc. was founded in 1973.
cboe holdings inc (C67:Berlin)
400 South LaSalle Street
Chicago, IL 60605
|ASX Ltd||A$39.53 AUD||+0.72|
|ICAP PLC||398.10 GBp||-7.30|
|Investment Technology Group Inc||$16.95 USD||-0.09|
|MarketAxess Holdings Inc||$105.29 USD||-1.69|
|TMX Group Ltd||C$37.19 CAD||-1.14|
|View Industry Companies|
Sponsored Financial Commentaries
To contact CBOE HOLDINGS INC, please visit www.cboe.com. Company data is provided by Capital IQ. Please use this form to report any data issues.