On Wednesday, CBOE Holdings, Inc.?(NASDAQ:?CBOE) and S&P Dow Jones Indices announced a finalized amendment to their license agreement. It extends Chicago?Board Options Exchange’s (CBOE) exclusive rights to list security options contracts based on certain indices calculated and published by S&P Dow Jones Indices through 2032, and non-exclusive rights through 2033.
According to the amendment,?CBOE?will continue with its rights to offer trading in its S&P 500? index options contract (SPX).
This is the most-active U.S index option and in 2012, it?averaged almost 700,000 contracts traded daily.
Here’s statements from the executives on the news.
CBOE Holdings?Chairman and CEO?William J. Brodsky:
“This year?marks 30?years since?CBOE?introduced the world’s first index options contract and shortly thereafter partnered with S&P Dow Jones Indices to launch trading in S&P 500 index options. For the first time, investors could use index options to gain exposure to the broader stock market with a single transaction — a groundbreaking concept that investors now take for granted. Our partnership with S&P Dow Jones Indices has deepened over the years, with new business opportunities we never dreamed of back in 1983, including creating new products, benchmarks, and strategy indexes. Thirty years after we completed our first agreement, we continue to enjoy a strong, mutually beneficial relationship.”
Alexander Matturri, CEO of S&P Dow Jones Indices:
“The launch of S&P 500 index options 30 years ago, along with other index derivatives, marked a dramatic change in how investors could diversify their holdings and trade the large-cap segment of the U.S. stock market. We are excited to extend our licensing agreement with our long-time exchange partner,?CBOE, to list options on our growing family of leading stock market indices. Our partnership with?CBOE?over the last three decades has changed how investors measure and view the financial markets.”
CBOE Holdings?President and COO?Edward T. Tilly:
“The extension of this contract is significant for?CBOE Holdings?and its stockholders and for S&P Dow Jones. S&P index options products and our highly successful VIX??complex, which uses S&P 500 options for index calculation, contribute substantially to our revenues. We are pleased that we will continue to partner with S&P Dow Jones Indices for many years to come to expand the use of?CBOE’s S&P product line and to collaborate on new product opportunities.”