CBOE to launch two FTSE options this month

CBOE will begin listed products on the FTSE 100 and FTSE China this month.

 

The Chicago Board Options Exchange (CBOE) will begin listed products based on the FTSE 100 and FTSE China 50 Index on 22 December.

The US options exchange struck a deal with the London Stock Exchange in February this year giving CBOE the rights to list optons on a rang of FTSE Russell indices. Through the agreement CBOE became the exclusive US provider of the options.

Investors are increasingly seeking Chinese-linked products with a surge in offshore Chinese index products including those in Singapore and Hong Kong. Other bourses have been luanching offshore renminbi products to cater for the demand.

The Chinese index options track a real-time tradable index comprising 50 of the largest Chinese stocks, traded on the Stock Exchange of Hong Kong (SEHK).

"We are pleased to expand our customer offerings with these new global index options," said CBOE Holdings chief executive officer Edward Tilly. "Institutional and other investors use both the FTSE 100 and the FTSE China 50 as key performance benchmarks.

“The FTSE 100 Index also is used as a performance measure by index-tracking funds and derivatives, and the FTSE China 50 was designed specifically for international investors seeking to gain exposure to Chinese equity markets."

CBOE will launch will list two products based on FTSE 100 and FTSE China this moth.

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