Cboe Introduces New Options Contracts On Corporate Bonds

Cboe Global Markets CBOE is set to enhance its corporate bond index product suite by introducing new options based on the Cboe iBoxx iShares $ High Yield Corporate Bond Index futures (IBHY) and Cboe iBoxx iShares $ Investment Grade Corporate Bond Index futures (IBIG). These additional options started trading on Cboe Futures Exchange, LLC (CFE) on July 10. 

The iBoxx iShares $ Corporate Bond Indices – developed by S&P Dow Jones Indices LLC – serve as comprehensive benchmarks for U.S. dollar-denominated high-yield corporate debt. They offer extensive coverage of the liquid bond universe in this segment. These indices are an integral part of the iBoxx index family, which provides accurate and objective measures for assessing bond market performance and investments.

The introduction of options on Cboe iBoxx iShares Bond Index futures will provide investors with additional tools to manage risk and exposure in their corporate bond portfolios. These new products will expand risk management capabilities, enabling more effective credit portfolio management.

The availability of IBHY and IBIG options on futures aims to cater to a wide range of participants in the futures market, including those who do not have access to securities-based options products. Furthermore, the extended trading hours for IBHY and IBIG futures will facilitate more efficient position management for investors in the United States and around the world.

IBHY futures derive their price from the iBoxx iShares $ High Yield Corporate Bond Index, while IBIG futures are based on the iBoxx iShares $ Investment Grade Corporate Bond Index. The new options will have American-style exercise, be physically settled, and be traded electronically on CFE during regular trading hours.

Cboe Global Markets is dedicated to enhancing the market experience for its participants and driving progress in the global marketplace through innovative products, cutting-edge technology and seamless trading solutions. With a long history of introducing market-defining options and volatility products, Cboe has revolutionized risk transfer and capital-building for market participants worldwide.

Capitalizing on the success of its index options, volatility products, and robust options trading volumes, Cboe expects its derivatives business to continue to prosper, contributing to the overall net revenues of the exchange holding company.

Cboe's impressive track record of market-defining products has positioned it as a leader in the industry for well over a century. Reflecting its dominant position, Cboe's current annual stock performance has shown remarkable growth, increasing by 10.78% compared to CME Group's CME 8.47%, Deutsche Borse AG's DB 5.77%, and Nasdaq Inc.'s NDAQ -16.78% respectively (and as of this writing). 

The introduction of new bond options further exemplifies Cboe's commitment to product innovation and market share expansion.

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