Cboe extends FTSE license deal to 2030
29th April, 2020|Luke Jeffs
Cboe Global Markets and FTSE Russell, part of the LSE Group, have extended US options Cboe's agreement
Cboe Global Markets and LSE-owned FTSE Russell have extended by ten years their agreement that grants the US exchange group the exclusive right to list options based on FTSE Russell equity indices.
The Chicago-based group, which runs the largest US options market, said on Wednesday it has signed an exclusive license agreement to continue offering in the US FTSE equity index options until 2030.
The extension of the agreement, that was signed in 2015 and refers to the US only, means Cboe retains exclusive access to offer options on the Russell 2000 Index, Russell 1000 Index, and the Russell 1000 Growth and Value Indices.
Cboe said in a statement on Wednesday it also plans to work with the London-based index firm to develop “the potential for new options on nearly two dozen additional FTSE Russell indices”.
Ed Tilly, chairman, president and chief executive officer of Cboe Global Markets, said: “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.”
Waqas Samad, CEO of FTSE Russell Indexes & group director, Information Services, LSEG, said: “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.”
Cboe has license agreements with S&P Global Platts, MSCI and Dow Jones as well as FTSE Russell
The exchange’s average daily volume of FTSE Russell options was about 40,000 contracts in 2019, with total open interest at over 500,000 contracts at year end, Cboe said.
The Russell 2000 index option, which became available on Cboe in 1992, is the exchange group’s fourth most popular product, trading 540,000 lots in March, according to Euromoney TradeData.
FTSE Russell has had since 2015 exclusive agreements in the US with Cboe for options and CME for futures. The LSE firm also has license agreements with Intercontinental Exchange and the Singapore Exchange.
