On Monday, the BOX Options Exchange announced that it had?received SEC approval to offer Jumbo SPY to its customers. These are a?new options contract overlying 1,000 SPY ETF shares per contract; this compares to the 100 shares per contract for standard options.
Tony McCormick, CEO of BOX, said in press release,??BOX is excited to respond to customer needs by offering Jumbo SPY. Jumbo SPY creates both fee and price competition across ETFs and index products, and gives market makers another tool to hedge their portfolios.?
Jumbo 1,000 share SPY contracts have been designed for institutions and customers interested in greater notional value and the physical settlement offered by ETF options.
The exchange believes the Jumbo SPY options will begin trading on Friday, May 10.
Ed Boyle, senior vice president of strategy at BOX added,??The Jumbo SPY is attractive for institutional traders who prefer larger-sized contracts as it gives them the ability to buy and sell without moving through price points in the market. Offering Jumbo SPY opens up a broader offering and greater flexibility to BOX customers.?