Cboe to offer SPX/RUT multi-class spreads

Maria Nikolova

C1 is set to begin support for open outcry trading of all combinations of S&P 500 Index Options (SPX/SPXW) versus Russel 2000 Index options (RUT/RUTW) multi-class spreads.

Effective August 21, 2020, Cboe Options Exchange (C1) is set to begin support for open outcry trading of all combinations of S&P 500 Index Options (SPX/SPXW) versus Russel 2000 Index options (RUT/RUTW) multi- class spreads (SPX/RUT; SPX/RUTW; SPXW/RUT; SPXW/RUTW).

In line with Rule5.6(c), a multi-class spread order is an order to buy a stated number of contracts of a Broad-Based Index Option and to sell an equal number, or an equivalent number, of contracts of a related Broad-Based Index Option. As with any multi-class spread, Rule 5.85(d) requires that an SPX/SPXW versus RUT/RUTW spread order must be entered on a single order ticket at time of systemization and must be represented at a trading station at which one of the applicable classes trades (i.e., a primary trading station).

Immediately after (or concurrent with) the announcement of the order at the primary trading station, the representing Trading Permit Holder (TPH) must contact the Designated Primary Market-Maker (DPM), Lead Market-Maker (LMM) or appropriate Exchange staff at the trading station where the other applicable class trades to announce the order to the other trading crowd.

Consistent with order handling for all multi-class spreads, SPX/SPXW versus RUT/RUTW spread orders will be routed to PAR and will not be eligible for electronic processing via COA, COB, AIM, or SAM. SPX/SPXW versus RUT/RUTW spread orders marked electronic-only will be rejected.

The only permitted ratio will be 1:1. Orders with any other ratio will be rejected.

Only one SPX/SPXW and one RUT/RUTW leg will be supported. Orders with more than one

SPX/SPXW leg or more than one RUT/RUTW leg will be rejected.

Let’s note that the minimum Price Increment for orders and executions will be $0.05. However, leg prices will be permitted in $0.01 increments.

Testing of the new SPX/RUT multi-class spreads is currently available in the C1 certification environment.

Read this next

Digital Assets

Alameda sues Voyager Digital to recover $445 million

FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.

Metaverse Gaming NFT

Toyota taps Astar Network to explore Web3 in grand style

Although the crypto ecosystem has faced its fair share of bumps, Japanese automaker Toyota is seemingly bullish about the space and continue to look at Web3 as a promising opportunity.

Digital Assets

Bitcoin dominates inflows into crypto funds, AuM hits $28B

As the price of bitcoin continues to consolidate around recent highs, investors expand their positions in funds designed to profit from further appreciation in the cryptocurrency.

Institutional FX

Fiserv secures major payment institution licence in Singapore

Brookfield-based financial services technology provider Fiserv Inc has obtained nod for a Major Payment Institution license in Singapore.

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.

Opinion

It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”

<