On Friday, Russell Investments announced that NYSE Euronext (NYSE:NYX) and Chicago Board Options Exchange?(CBOE) will exclusively trade Russell U.S. Index-based options.
Russell Indexes noted in a press release that this semi-exclusive, dual-listing strategy will enable it to “harness” the complementary strengths of the exchanges. It will also align the strengths of the two U.S. options platforms while providing greater support and education for the five options-based Russell Indexes as well as?broaden offerings on Russell Index-based options.?
Previously, the Russell 2000??Index of small-cap U.S. stocks (RUT) had been listed on several U.S. exchanges.
Trading on these products will begin in late April.
Ron Bundy, CEO of Russell Indexes said in a press release,?”Our new more focused alignment with NYSE Euronext and the?CBOE?will allow the Russell family of global indexes to expand the options products and services based on Russell Indexes available to clients globally. Joining forces with these two very unique and complementary organizations is consistent with our goal to expand our reach, increase our focus and build our service capabilities for multi-asset investors and traders around the world.”
This follows the January global alliance between the Russell Indexes and NYSE Euronext, which encompassed three NYSE Euronext business lines, multiple geographies, and several aspects of Russell’s global index business. The earlier agreement also included the transition of RussellTick? to NYSE?Technologies’ Global Index Feed (GIF). ?
In response to Friday’s news, Steve Crutchfield, Executive Vice President and Head of U.S. Options at NYSE Euronext, said, “NYSE Euronext has built a world-class portfolio of products and services on two distinctly customer-focused exchanges designed to encourage growth and create opportunity for investors. We are very excited to work with Russell Indexes to help advance their dynamic business with our highly complementary services and industry-leading exchanges.”
As for Russell’s agreement with CBOE, it will enhance Russell Indexes educational capabilities through a closer alignment. The two already have an established relationship. ?
CBOE Holdings?Chairman and CEO?William J. Brodsky said,?”We are delighted to extend our long-standing partnership with Russell Indexes under this semi-exclusive agreement as we collaborate to grow the universe of index options users. As the creator of stock index options 30 years ago and the industry leader in index options trading,?CBOE?maintains a broad network of market makers that generate enormous pools of liquidity for small, medium and large-cap index investors and traders. This liquidity is very important to Russell Index options users.”