SEC Approves CBOE Holdings' Proposal To Trade SPXpm

CBOE Holdings

announced today that the Securities and Exchange Commission has approved its rule filing to launch, on a pilot basis, SPXpm, its proposed new S&P 500 Index option product. SPXpm will be traded on the C2 Options Exchange, the Company's all-electronic exchange. C2's SPXpm product will be a cash-settled index option based on the S&P 500 Index, the premier benchmark of the broader U.S. market. SPXpm is almost identical in structure to the Chicago Board Options Exchange's flagship S&P 500 SPX contract, the most-actively traded U.S. index option product, except, as the SPXpm name implies, it has a "p.m." settlement. "We are pleased to provide investors with a new, efficient way to trade options on the S&P 500," said William J. Brodsky, CBOE Holdings Chairman and Chief Executive Officer. "SPXpm will offer users 'point-and-click' convenience, and the large contract size -- with one SPXpm contract being ten times larger than one SPY option contract -- will make SPXpm extremely cost-effective to trade." Brodsky continued, "The launch of SPXpm will enable us to broaden our customer reach by providing two very deep pools of liquidity to trade the S&P 500 Index -- one trading SPXpm electronically on C2, and the other trading SPX AM with the ability to negotiate large, complex orders afforded by floor trading at CBOE."