Cboe launches Mini S&P 500 Index (XSP) options trading 24/5

Rick Steves

Cboe Global Markets, Inc. is preparing the launch of trading in Mini S&P 500 Index (XSP) options during global trading hours (GTH), to go live on December 11, 2022.

This effectively means that Mini S&P 500 Index (XSP) options will be available for trading nearly 24 hours every business day.

XSP options were first listed on Cboe with Tuesday and Thursday weekly expiring contracts to provide expirations on every business day of the week. By adopting the GTH session for XRP options, the derivatives giant goes one step further.

XSP joins SPX and VIX options and futures trading 24/5 on Cboe

The upcoming launch of Mini S&P 500 Index (XSP) option is not Cboe’s first product trading during the GTH session as it will add to the existing offering of its flagship S&P 500 Index® (SPX) options and Cboe Volatility Index® (VIX®) options and futures. Alongside SPX and VIX options, XSP options will trade during all three sessions.

Similar to SPX options, Cboe will offer both standard monthly-expiring contracts and daily-expiring contracts for XSP options during all sessions.

With the ability to trade all four products around the clock, market participants globally will have even more product choice to manage risk more efficiently, react to global macroeconomic events as they are happening and adjust their positions, no matter the hour of the day.

In U.S. time, Cboe’s GTH session begins at 8:15 p.m. ET and runs until 9:15 a.m. ET the following morning. Regular trading hours (RTH) then run from the U.S. market open at 9:30 a.m. ET until the market close at 4:15 p.m. ET. For each Monday business day, trading in GTH begins Sunday evening at 8:15 p.m. ET. In addition, the RTH session is followed by a curb session for SPX and VIX options – an extra session for electronic trading to adjust, unwind, or close out trades from 4:15 p.m. ET to 5:00 p.m. ET, Monday through Friday.

Cboe’s proprietary products grow globally

Arianne Adams, Senior Vice President, Head of Derivatives and Global Client Services at Cboe Global Markets, said: “Cboe’s popular, cash-settled SPX options have long been the index option of choice for market participants around the world seeking to manage their U.S. equity exposure, hedge risk and generate income. As demand for Cboe’s proprietary products continues to grow globally from both institutional and retail customers, the ability to also trade XSP options during GTH helps investors to harness the smaller-sized contract to execute trading strategies with even greater precision and flexibility on a nearly 24 hours-a-day, five days-a-week basis.”

XSP options is 1/10th of the size of a standard SPX options contract which provides a more manageably sized contract and greater flexibility for new index options traders or traders looking to manage their notional exposure with greater precision.

The products also offer potentially favorable tax treatment1, European-style exercise (no early exercise) and cash settlement (no delivery or assignment of shares) at expiration.

SPX and XSP options are exclusively listed on Cboe Options Exchange and are among the most actively traded index options products in the world: a new monthly record of 60.8 million SPX options contracts traded was set in October, up 88 percent from October 2021, with average daily volume (ADV) of 2.9 million contracts; more than 1.3 million XSP options contracts were traded in October, up 255 percent from a year ago, with ADV of 62,000 contracts.

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