SPX Options on C2 Decision June 6th

Discussion in 'Options' started by uptickk, Apr 21, 2011.

  1. uptickk


  2. uptickk


  3. but how will they be marketed? market makers model like the OEX 100 or ETF model like SPY. the illiquitity & manipulation of MMs in OEX options make it less popular than the SPY options.
  4. newwurldmn


    the oex doesn't have as liquid of a futures market making it harder to hedge. the spx market is much more liquid, though the posted bid offers would suggest otherwise. this is a great move for retail traders because we can effectively trade for 1/10th the commission.
  5. although the bid/ask seems wide for spx options as they're currently traded you can almost always find price improvement if you're willing to work the order (more so than other less popular underlyings)
  6. FSU


  7. still no news? WTF man!:mad:

    CBOE is the exclusive venue for trading options linked to the S&P 500, thanks to a closely guarded licensing arrangement with the index developer. The originator of U.S. options trading in early March filed plans to list "SPX p.m." contracts, which replicate CBOE's benchmark SPX options but which settle in the afternoon. The original version settles in the morning.

    The lesser-used afternoon settlement of the proposed contracts aims to protect CBOE's established floor business in SPX options, but has prompted rival exchange officials to request a close examination of the concept.

    In April, the Securities and Exchange Commission said it would need until June to review the proposal. In June, the SEC further extended its review with a new potential end-date of Sept. 6, with the possibility to further extend the examination by another two months.

    "I can't promise it will happen on [Sept. 6]; I can't promise it will happen, period," Brodsky said Thursday.

    He said CBOE has a backup plan if regulators block the effort, though he declined to comment on the plan's specifics. However, he said he remained "cautiously optimistic" that the contract would win approval.
  8. FSU


    #10     Sep 5, 2011