- New Interest Rate Derivatives Venture Backed by London Stock Exchange Group, CBOE, Major Dealer Banks
- Market to Provide Competitive Offering in Interest Rate Futures
CHICAGO, IL / CRWEPRESSRELEASE / October 16, 2015 - CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that it made a minority investment in CurveGlobal, a new interest rate derivatives venture of the London Stock Exchange Group (LSEG) and a number of major dealer banks. CBOE is the only U.S. exchange in the venture. Financial terms of CBOE’s investment were not disclosed.
CurveGlobal plans to initially offer trading in Short Term Interest Rate (STIR) futures in Euribor and Short Sterling and Long Term Interest Rate (LTIR) futures in Bund, Bobl, Schatz and Gilts. Additional products are expected to be rolled out following the launch phase. All products designed and supported by CurveGlobal will be traded on LSEG’s wholly owned subsidiary, London Stock Exchange plc’s London Stock Exchange Derivatives Market and cleared through LCH.Clearnet. Trading of CurveGlobal products is expected to launch in the second quarter of 2016, subject to regulatory approvals and necessary licenses.
Changes in regulation have increased the cost of trading interest rate derivatives. The launch of CurveGlobal caters to banks and other market participants looking for more capital efficient ways to trade and hedge these products. CurveGlobal will bring competition to the space, providing more product choices and, through LSEG’s trading and clearing platforms, offer greater trading efficiency and reduced transaction costs.
“CBOE’s investment in CurveGlobal provides our company with a stake in an innovative venture that responds to a growing need in the marketplace,” said CBOE Holdings CEO Edward T. Tilly. “CurveGlobal represents a unique value proposition for interest rate futures users, and CBOE is pleased to be its U.S. anchor exchange. We look forward to leveraging our trading and product development expertise to help CurveGlobal drive new trading opportunities and marketplace efficiencies.”
Near term, CBOE’s investment in CurveGlobal will be immaterial from a financial perspective; however, CBOE is very optimistic about the potential for growth longer term.
Additional information on CurveGlobal can be found in the LSEG press release at:
Certain information contained in this news release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.
About CBOE Holdings, Inc.:
CBOE Holdings, Inc. (NASDAQ: CBOE) is the holding company for Chicago Board Options Exchange (CBOE), CBOE Futures Exchange (CFE), and other subsidiaries. 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 Holdings offers equity, index and ETP options, including proprietary products, such as options and futures on the CBOE Volatility Index (VIX Index) and S&P 500 options (SPX), the most active U.S. index option. Other products engineered by CBOE include equity options, security index options, Weeklys options, FLEX options, and benchmark products such as the CBOE S&P BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute, Livevol options analytics and data tools, and www.cboe.com, the go-to place for options and volatility trading resources.
CBOE®, Chicago Board Options Exchange®, Execute Success®, FLEX®, Livevol®, CBOE Volatility Index® and VIX® are registered trademarks, and BuyWriteSM, BXMSM, The Options InstituteSM and WeeklysSM 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 owners.
Source: CBOE Holdings, Inc.