The S&P 500 Index is the premier benchmark of the broader U.S. market, and SPX is the most actively traded U.S index option product. SPXpm is proposed as a cash-settled index option based on the S&P 500 Index with a “p.m.” mode of settlement, a feature often found in the Over-The-Counter (OTC) markets, as well as in popular exchange-traded retail products, such as SPDRs and individual equity options.
The addition of SPXpm options should enable CBOE Holdings to broaden its customer reach by providing two very deep pools of liquidity for S&P 500 Index options. SPXpm is designed to appeal to investors who desire the p.m. settlement feature and favor the convenience of point-and-click electronic trading, while trading in SPX options at the Chicago Board Options Exchange (CBOE) will continue to serve the needs of investors who favor the flexibility and ability to negotiate large, complex orders afforded by floor trading.
CBOE Holdings, Inc. is the holding company for Chicago Board Options Exchange (CBOE), C2 Options Exchange and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE's Hybrid Trading System incorporates electronic and open-outcry trading, enabling customers to choose their trading method. CBOE's Hybrid is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports C2 Options Exchange (C2), the CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and www.cboe.com, named "Best of the Web" for options information and education. CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the AAA-rated OCC.