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Cboe Plans September 10 Launch of U.S. High Yield Corporate Bond Index Futures Trading

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Cboe Plans September 10 Launch of U.S. High Yield Corporate Bond Index Futures Trading

PR Newswire

CHICAGO, Aug. 24, 2018 /PRNewswire/ -- Cboe Global Markets, Inc. ((Cboe: CBOE, NASDAQ:CBOE), one of the world's largest exchange holding companies, today announced that Cboe Futures Exchange (CFE), plans to offer trading in Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index (IBHY) futures beginning September 10, 2018, pending regulatory review.

(PRNewsfoto/Cboe Global Markets, Inc.)

The $8.5 trillion U.S. corporate bond market includes robust cash and exchange-traded fund (ETF) markets, however, there is currently no exchange-listed futures product linked to U.S. corporate bonds. Cboe IBHY futures are based on a broad-based U.S. high yield corporate bond index and are expected to bring additional liquidity and price transparency to the marketplace. The futures will allow users to hedge and mitigate high yield corporate bond credit risk, and more generally allow them to efficiently allocate to the corporate bond market and implement fixed-income trading strategies. 

Chris Concannon, Cboe President and Chief Operating Officer, said: "Cboe's product innovation expertise has created the infrastructure necessary to transform corporate bond index futures from product idea to tradable reality. Cboe IBHY futures will offer exposure to the U.S. high yield corporate bond market, providing customers with a convenient, standardized vehicle for fixed-income trading."

The price of Cboe's IBHY futures is based on IHS Markit's iBoxx® iShares® $ High Yield Corporate Bond Index (IBXXIBHY Index). Leveraging the deep and liquid iShares® ETF ecosystem, the IBXXIBHY Index is designed to measure the performance of U.S. dollar-denominated high-yield corporate debt, and offers broad coverage of the liquid U.S. high yield corporate bond universe.

Cboe IBHY futures will be cash-settled with a $1,000 multiplier and trade electronically on CFE during regular trading hours (8:30 a.m. to 3:15 p.m. CT). The contracts will be cleared through the Options Clearing Corporation (OCC) and regulated by the Commodity Futures Trading Commission (CFTC).

To learn more about Cboe IBHY futures, including contract specifications, product fact sheet and historical IBXXIBHY Index performance, visit http://cfe.cboe.com/cfe-products/ibhy.

About Cboe Global Markets, Inc.

Cboe Global Markets, Inc. ((Cboe: CBOE, NASDAQ:CBOE) is one of the world's largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. The company is committed to relentless innovation, connecting global markets with world-class technology, and providing seamless solutions that enhance the customer experience.

Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global FX and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), the world's barometer for equity market volatility.

Cboe's trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe.  In addition, the company is the second-largest stock exchange operator in the U.S. and a leading market globally for ETP trading.

The company is headquartered in Chicago with offices in Kansas City, New York, London, San Francisco, Singapore, Hong Kong and Quito, Ecuador.  For more information, visit www.cboe.com.


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Cboe®, VIX® and Cboe Volatility Index® are registered trademarks and Cboe Global MarketsSM is a service mark of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners.

Cboe  Global  Markets,  Inc.  and  its  affiliates  do  not  recommend  or  make  any  representation  as  to  possible  benefits  from  any  securities, futures  or  investments,  or third-party products or services. Cboe Global Markets, Inc. is not affiliated with iShares or IHS Markit. Investors should undertake their own due diligence regarding their securities, futures and investment practices.  This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein.

Nothing in  this  announcement  should  be  considered  a solicitation to  buy or an offer  to  sell  any securities or futures  in any  jurisdiction  where  the offer  or  solicitationwould  be  unlawful  under  the  laws  of  such  jurisdiction.  Nothing  contained  in  this  communication  constitutes  tax,  legal  or  investment  advice.  Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.

Cboe  Global  Markets,  Inc.  and  its  affiliates make  no  warranty,  expressed  or  implied,  including,  without  limitation,  any  warranties  as  of  merchantability,  fitness  for  a particular  purpose,  accuracy,  completeness  or  timeliness,    the  results to  be  obtained  by  recipients  of  the  products  and  services  described  herein, or as to the ability of iBoxx iShares $ High Yield Corporate Bond Index to track the performance of the fixed income securities market, generally, or the performance of HYG or any subset of fixed income securities, and shall not in any way be liable for any inaccuracies, errors.  Cboe Global Markets, Inc. and  its  affiliates have not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise iBoxx iShares $ High Yield Corporate Bond Index and shall not in any way be liable for any inaccuracies, errors. 

Forward-Looking Statements
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.

The iBoxx iShares $ High Yield Corporate Bond Index (the "Index") referenced herein is the property of Markit Indices Limited ("Index Sponsor") and has been licensed for use in connection with Cboe iBoxx iShares $ High Yield Corporate Bond Index Futures.  Each party to a Cboe iBoxx iShares $ High Yield Corporate Bond Index Futures transaction acknowledges and agrees that the transaction is not sponsored, endorsed or promoted by the Index Sponsor.  The Index Sponsor makes no representation whatsoever, whether express or implied, and hereby expressly disclaims all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use), with respect to the Index or any data included therein or relating thereto, and in particular disclaims any warranty either as to the quality, accuracy and/or completeness of the Index or any data included therein, the results obtained from the use of the Index and/or the composition of the Index at any particular time on any particular date or otherwise and/or the creditworthiness of any entity, or the likelihood of the occurrence of a credit event or similar event (however defined) with respect to an obligation, in the Index at any particular time on any particular date or otherwise.  The Index Sponsor shall not be liable (whether in negligence or otherwise) to the parties or any other person for any error in the Index, and the Index Sponsor is under no obligation to advise the parties or any person of any error therein.

The Index Sponsor makes no representation whatsoever, whether express or implied, as to the advisability of purchasing or selling Cboe iBoxx iShares $ High Yield Corporate Bond Index Futures, the ability of the Index to track relevant markets' performances, or otherwise relating to the Index or any transaction or product with respect thereto, or of assuming any risks in connection therewith.  The Index Sponsor has no obligation to take the needs of any party into consideration in determining, composing or calculating the Index.  No party purchasing or selling Cboe iBoxx iShares $ High Yield Corporate Bond Index Futures, nor the Index Sponsor, shall have any liability to any party for any act or failure to act by the Index Sponsor in connection with the determination, adjustment, calculation or maintenance of the Index.

iBoxx® is a service mark of IHS Markit Limited.

The iBoxx iShares $ High Yield Corporate Bond Index (the "Index") and futures contracts on the Index ("Contracts") are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, "BlackRock").  BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular.  Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG or any subset of fixed income securities. 

BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise the Index ("Underlying Data").  BlackRock is not responsible for and has not participated in the determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or in the determination or calculation of the equation by which the Contracts are to be converted into cash (if applicable).  BlackRock has no obligation or liability in connection with the administration or trading of the Contracts.  BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto. 

BlackRock makes no warranty, express or implied, as to results to be obtained by Markit or its affiliates, the parties to the Contracts or any other person with respect to the use of the Underlying Data or any data included therein.  BlackRock makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Data or any data included therein.  Without limiting any of the foregoing, in no event shall BlackRock have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) resulting from the use of the Underlying Data or any data included therein, even if notified of the possibility of such damages.

iShares® is a registered trade mark of BlackRock Fund Advisors and its affiliates.

 

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SOURCE Cboe Global Markets, Inc.

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