In August, Cboe™ acquired leading Canadian Alternative Trading System (ATS) MATCHNow, launched Mini VIX futures, analyzed usage trends for Quote Depletion Protection (QDP) and more. Follow us on Twitter for daily updates as we continue defining markets and check back here at the end of August for our next monthly update.
Cboe Completes its Acquisition of MATCHNow
Cboe completed its acquisition of MATCHNow on August 4, ushering in a new era for the company’s North American Equities business. The addition of the leading Canadian ATS gives Cboe a foothold in a large and growing market and is part of a vision to create a broader North American equities platform that leverages Cboe’s world-class technology, product innovation and expertise in operating markets.
Cboe Global Markets Reports July 2020 Trading Volume
Cboe reported its July 2020 trading volume on August 5. Average Daily Volume (ADV) across Cboe’s four options exchanges was up 33 percent and total ADV across Cboe’s four equities exchanges was up 48 percent, compared to July 2019. Additionally, Global FX ADNV was up 9 percent from July 2019.
10 Key Features of the VIX Index and New Mini VIX Futures (VXM)
Cboe Futures Exchange (CFE®) launched trading in Mini Cboe Volatility Index® futures (VXMSM) on Monday, August 10. Mini VIX futures, which are structured like standard VIX futures, just at 1/10th the size, surpassed 25,000 contracts within its first full day of trading and broke the 250,000 mark within the first two weeks. There continues to be broad participation from a diverse mix of market participants, including growing interest with brokers.
The increased volatility in 2020 amplified interest in the Cboe Volatility Index (VIX®) and related products, driving demand for a new addition to the VIX Index suite. We compiled a list of features that may help market participants better understand the VIX Index and the new Cboe Mini VIX futures.
Cboe Global Markets Sees Strong Debut for New Mini VIX Futures
At 1/10th the size of the standard VIX futures contract, Mini VIX futures are designed to provide additional flexibility and precision in volatility risk management of the S&P 500® Index. A week after the successful launch of Mini VIX futures on August 10, Cboe shared highlights from the launch and early volume numbers. Trading volume in (Mini VIX) futures totaled nearly 127,000 contracts in the first week of trading, with over 20 firms participating as lead market makers.
Mini VIX Futures Daily Volume Surpasses 100,000 Contracts for First Time
On Thursday, August 27, Cboe announced that Mini VIX futures surpassed the 100,000-contract mark for the first time, when daily volume reached 117,814 contracts. Total trading volume exceeded over 521,000 contracts in the first 14 trading days, with average daily volume (ADV) of 37,000 contracts, reflecting strong interest from a broad base of market participants across the global trading community.
Five Best Practices for ETF Trading
With so many different trading metrics and order types available, it can be difficult to effectively navigate the significance of each, especially during times of heightened volatility. When it comes to exchange-traded funds, or ETFs, seemingly small trading factors can have a big impact on the overall investment. We compiled a few tips to help you navigate the ETF space.
Cboe Global Markets Announces Election of Jennifer McPeek to Board of Directors
On August 14, Cboe announced Jennifer McPeek’s election to its Board of Directors. Ms. McPeek is an independent advisor to companies on value-based management and incentive design and previously served as the Chief Financial Officer of Russell Investments.
Cboe Global Markets Declares Increased Third-Quarter 2020 Dividend
On August 14, Cboe announced its Board of Directors declared an increased quarterly cash dividend of $0.42 per share of common stock for the third quarter of 2020, representing a 17 percent increase from the prior quarter’s dividend of $0.36 per share. This is the tenth consecutive year Cboe has increased its dividend.
Smart Execution with Quote Depletion Protection
Cboe launched the Quote Deletion Protection (QDP) enhancement on Midpoint Discretionary Orders (MDO) on the Cboe EDGX™ and EDGA™ exchanges in June and the enhancement was quickly adopted by a number of Cboe customers. QDP is designed to provide users with a way to counter adverse selection and capture liquidity more opportunistically. The distinguishing factor for QDP orders is the order’s ability to smartly toggle discretion based on expected near-term price trends. This decision-making is driven by a proprietary indicator that prevents the order from exercising price discretion for 2 milliseconds. In our latest Medium post, we analyzed customer usage of QDP and trends that we have observed so far.
Cboe Global Markets to List New Cboe S&P 500® ESG Index Options Beginning September 21
On August 27, Cboe announced plans to list options on the S&P 500® ESG Index on September 21, 2020, pending regulatory review. Cboe S&P 500 ESG Index options provide representation of companies meeting S&P DJI’s environmental, social and governance (ESG) factors, while offering investors a risk-return profile similar to that of the S&P 500® Index. The new options are expected to have particular utility for market participants seeking an efficient way to gain exposure to or hedge the U.S. equity market that meets sustainability criteria.
The information in this article is provided for general education and information purposes only. No statements within this article should be construed as a recommendation to buy or sell a security or to provide investment advice. Supporting documentation for any claims, comparisons, statistics or other technical data in this article is available by contacting Cboe Global Markets at www.cboe.com/Contact. Cboe is a registered trademark of Cboe Exchange, Inc. All other trademarks and service marks are property of their respective owners.
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