Index futures could draw volume from CME and CBoT
Chicago Board Options Exchange (CBOE)'s newly approved
futures exchange is raising some eyebrows among industry
executives who believe the market has potential.
CBOE Futures Exchange received approval from Commodity
Futures Trading Commission on 7 August but the exchange has
neither announced plans for contracts nor a launch date. CBOE
currently trades cash-settled index options on approximately 40
indices and plans to list some of them as futures contracts,
according to the CFTC announcement. But a CBOE spokesperson
declined to comment any further on the new futures market.
Futures and options industry veterans say CBOE Futures
Exchange can succeed, even with established exchanges such as
Chicago Board of Trade (CBoT) and Chicago Mercantile Exchange
(CME) and the looming entrance of Eurex's futures and options
markets in the US. CBOE is already fighting to regain the
options market share it has lost to International Securities
Exchange (ISE) over the past three years. It also is awaiting
new competition from Boston Options Exchange, which could
launch by year-end.
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