NYSE Euronext’s speedy rejection of a bid from Nasdaq OMX Group Inc and IntercontinentalExchange Inc could play into their hands, a veteran of the last bidding war for a U.S. exchange said. Get the full story »
CBOE Holdings
CBOE Holdings Inc. claims it is the largest option exchange in the United States. The company, in addition to its core options trading business, provides marketplaces for trading futures contracts and cash equities through its subsidiary, CBOE Futures Exchange, and its affiliate CBOE Stock Exchange. During the year ended December 31, 2009, the volume of options contracts traded at the Chicago Board Options Exchange (CBOE) was 1.13 billion, or 4.5 million contracts per day.
The company trades options with terms of up to nine months on the stocks of over 2,300 corporations that are listed on the New York Stock Exchange (NYSE), NYSE Amex, LLC (NYSE Amex) and National Association of Securities Dealers Automated Quotation (NASDAQ). In addition, it also trades long-term options, known as Long-term Equity AnticiPation Securities (LEAPS), on approximately 800 stocks with terms of up to 39 months. It trades options on 10 different broad- and narrow-based market indexes, including indexes that it has developed, such as the CBOE S&P 500 Volatility Index (VIX). The index options it trades include some of the measures of the United States equity markets, such as the S&P 500, the Dow Jones Industrial Average (DJIA), the NASDAQ 100 and the Russell 2000. It trades options on approximately 200 exchange-traded funds (ETFs), based on various domestic and foreign market indexes. It also trades LEAPS on 66 ETFs.
The company competes with NYSE Amex, Boston Options Exchange (BOX), International Securities Exchange, Inc. (ISE), NYSE Arca, Inc. (NYSE Arca), NASDAQ OMX NASDAQ OMX PHLX, Inc. (PHLX), NASDAQ Options Market (NOM) and BATS Trading Inc. (BATS).
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CBOE chief’s pay dwarfs rivals at NYSE, CME
CBOE Holdings Inc. Chief Executive Officer William Brodsky, who steered the operator of the biggest U.S. options market through an initial public offering last June, received a giant pay boost for his efforts. Get the full story »
CBOE to build up VIX in effort to lure traders
The Chicago Board Options Exchange said it plans to expand its volatility-index franchise, aiming to lure more traders to an area where it already leads its competition.
The exchange, part of CBOE Holdings Inc., said in a release Wednesday that it plans to list options on single-stock volatility measures and to extend the franchise to a raft of sector exchange-traded funds. The CBOE Volatility Index, or VIX, is often called the “fear index” and is the most widely followed gauge of investor expectations for stock-market swings. Get the full story »
CBOE shares up; analyst calls Nasdaq likely suitor
CBOE Holdings Inc. shares jumped Friday after a Credit Suisse analyst called the U.S. options market operator a takeout candidate and fingered Nasdaq OMX Group as its most likely suitor.
“We believe a NDAQ-CBOE combination would have strong strategic merits for both companies,” Howard Chen wrote in a note to clients devoted to an analysis of such a takeover, although no such deal has been announced. Chen raised his rating on the operator of the Chicago Board Options Exchange to “outperform.” Get the full story »
CBOE’s Brodsky says niche is not only option
CBOE Holdings Inc.’s focus on equity derivatives has kept it competitive against larger rivals, but remaining a niche player “may not be the only way that we will succeed,” CEO William Brodsky told Reuters in an interview on Wednesday.
Germany’s Deutsche Boerse AG agreed last week to buy NYSE Euronext in a $10.2 billion deal, the biggest tie-up in a recent wave of global mergers that has also brought together the operators of the Toronto and London exchanges and the Australian and Singapore exchanges.
The deals have sparked speculation over what exchange could be the next takeover target. Get the full story »
Sun Trading cuts 40, exits options business
Chicago-based Sun Trading LLC this week cut its workforce by nearly one-third and wound down its options-trading arm amid tough conditions in the sector.
About 40 staff were laid off this week and the proprietary trading firm will no longer function as a registered market-maker on major U.S. stock-options markets like the Chicago Board Options Exchange and the International Securities Exchange. Get the full story »
Hong Kong exchange could consider CBOE merger
(Tim Boyle/Bloomberg)
Hong Kong Exchanges and Clearing Ltd. may knock on the doors of the tech-heavy Nasdaq or Chicago’s CBOE as the world’s most valuable stock exchange operator eyes a partner amid a frenzy of merger activity engulfing the sector.
Despite their geographical proximity, political, economic and organizational challenges make any potential marriage between the HKEx and the Shanghai or Shenzhen stock exchanges difficult.
“If I am the Hong Kong exchange, I would be trying to approach the bigger U.S. stock exchanges like Nasdaq right now,” said Ronald Wan, managing director of the Hong Kong unit of China Merchants Securities. Get the full story »
CBOE: All U.S. exchanges need to consider mergers
The U.S. exchanges left out of this week’s flurry of announced acquisitions now need to consider whether they, too, should strike a deal, a CBOE Holdings Inc. executive said on Friday. Get the full story »
CBOE Q4 profit up; merger threat downplayed
CBOE Holdings’ quarterly profit jumped more than expected, and CEO William Brodsky sought to assure investors that the operator of the oldest U.S. stock options market has the edge over rivals pairing up in mega-mergers.
The disclosure on Wednesday that Germany’s Deutsche Boerse AG was in advanced talks to buy NYSE Euronext to create the world’s largest financial exchange company sent shares of CBOE soaring on rekindled investor hopes that it would be a takeover target.
The announcement came on the heels of a tie-up between the London Stock Exchange Group Plc and Canadian stock market operator TMX Group Inc . Get the full story »
