- Cboe S&P 500 ESG Index options are designed to help market participants trade, hedge or gain exposure to U.S. equities meeting sustainability criteria
- Launch of new options driven by growing global demand for investment strategies focused on sustainability
- New options further expand Cboe's suite of S&P Dow Jones Indices product offerings
CHICAGO, Aug. 27, 2020 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, today announced plans to list options on the S&P 500® ESG Index (Cboe: SPESG) beginning September 21, 2020, further expanding Cboe's suite of products tied to S&P Dow Jones Indices (S&P DJI), pending regulatory review.
Cboe S&P 500 ESG Index options provide representation of companies meeting S&P DJI's environmental, social and governance (ESG) factors, while offering investors a risk-return profile similar to that of the S&P 500® Index. The new options are expected to have particular utility for market participants seeking an efficient way to gain exposure to or hedge the U.S. equity market that meets sustainability criteria.
The S&P 500® ESG Index is a broad-based, market cap-weighted index that measures the performance of securities meeting sustainability criteria, while maintaining similar overall industry group weights as the S&P 500® Index. The S&P 500® ESG Index aims to align investment objectives with ESG values, moving ESG from the fringe of market participants' portfolios to the core.
"Many market participants across the globe are increasingly pursuing a sustainable investing agenda that aligns with their own environmental, social and governance preferences," said Ed Tilly, Chairman, President and Chief Executive Officer at Cboe Global Markets. "The new Cboe S&P 500 ESG Index options are designed to respond to this growing demand from the marketplace by offering an additional tool that can provide global participants of all sizes with ESG representation within their portfolios, while enabling them to efficiently trade and manage their risk preferences."
"We are excited that Cboe is launching options based on the S&P 500® ESG Index. This latest development evolves the growing ecosystem of investable products tracking this leading ESG benchmark. Together, these products make sustainable investing possible and efficient for a wider range of market participants globally," said Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices.
The new contracts will complement Cboe's exclusive suite of S&P DJI Index options, which include S&P 500® Index (SPX) options, in standard and mini, one-tenth contract size (XSP), with A.M. and P.M. settled weekly and monthly expiring contracts, and options on S&P Select Sector Indices with monthly expiring contracts. Cboe S&P 500 ESG Index options also offer market participants the benefits of cash settlement and European-style exercise. Investors can also customize the key contract specifications with FLEX® options. The index and settlement values are available over the Cboe Streaming Market Indices (CSMI) feed. CSMI subscription and license requests may be sent to firstname.lastname@example.org. For additional information, visit www.cboe.com/ESG.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: 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 defining markets to benefit its participants and drive the global marketplace forward through product innovation, leading edge technology and seamless trading solutions.
The company offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S., Canadian and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and volatility products based on the Cboe Volatility Index (VIX Index), recognized as the world's premier gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the third largest stock exchange operator in the U.S. In addition, the company operates one of the largest stock exchanges by value traded in Europe and is a leading market globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas City and Amsterdam. For more information, visit www.cboe.com.
Cboe® and Cboe Global Markets® are registered trademarks and XSPSM is a service mark of Cboe Exchange, Inc. or its affiliates. Standard & Poor's®, S&P®, S&P 500®, and SPX® are registered trademarks of Standard & Poor's Financial Services, LLC, and have been licensed for use by 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 or investments, or third-party products or services. Investors should undertake their own due diligence regarding their securities 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 in any jurisdiction where the offer or solicitation would be unlawful under the securities 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.
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