Cboe Global Markets Plans to Expand Corporate Bond Index Offering with New Options on Futures and Extended Trading Hours for IBHY and IBIG Futures

• New options on Cboe® iBoxx® iShares® Bond Index futures will provide additional tools to help investors manage exposure and mitigate risk in corporate bond portfolios  
• Extending trading to global hours for IBHY and IBIG futures to nearly 24-hours per weekday will help enable investors to more efficiently manage positions around the clock 

CHICAGO, June 28, 2023 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced that it plans to expand its corporate bond index product suite with two new offerings. New options on Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index futures (futures ticker: IBHY) and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index futures (futures ticker: IBIG) are planned to be listed for trading on Cboe Futures Exchange, LLC (CFE) beginning July 10. CFE also plans to extend trading hours for IBHY and IBIG futures to nearly 24-hours per weekday in the third quarter of 2023.  

The $10.4 trillion U.S. corporate bond market includes robust cash and exchange-traded fund (ETF) markets, with CFE's IBHY and IBIG as the only exchange-listed futures products linked to U.S. corporate bonds. Designed to leverage the deep and liquid iShares® ETF ecosystem, CFE's futures and options on futures products can offer broad coverage of the U.S. corporate bond universe and allow users to hedge and mitigate corporate bond credit risk, and more generally allow them to efficiently allocate to the corporate bond market and implement fixed-income trading strategies. 

"We launched IBHY and IBIG futures in 2018 and are pleased to continue our collaboration with BlackRock and IHS Markit, now part of S&P Global, to further grow our corporate bond index offering. These new products and enhanced functionality will provide investors with expanded risk management tools that can help them more effectively manage their credit portfolios," said Arianne Adams, Senior Vice President, Head of Derivatives and Global Client Services at Cboe Global Markets. "Additionally, the new contracts and expanded trading hours are expected to also enable us to reach and better serve a broader universe of customers. We believe IBHY and IBIG options on futures will allow a wider array of futures market participants to use these products, including those unable to access securities-based options products, while extending trading to global hours for IBHY and IBIG futures will help investors in the U.S. and abroad more efficiently manage positions around the clock."  

"The iBoxx iShares $ Corporate Bond Indices are the latest addition to the benchmarks that comprise the liquid S&P Dow Jones Indices fixed income tradable ecosystem. S&P DJI is pleased with its ongoing collaboration with Cboe and the licensing of its iBoxx high yield and investment grade bond indices as the underlying benchmarks for the exchange's latest product launch. With its expanded fixed income indexing capabilities through the S&P Global and IHS Markit merger, S&P DJI is able to provide a full suite of index tools to help clients better measure risks and opportunities in the credit markets. This launch also further strengthens the liquid ecosystem of financial products that are already tracking both S&P DJI's family of equity and fixed income market benchmarks," said Tim Brennan, Managing Director and Head of Capital Markets at S&P Dow Jones Indices.

Options on IBHY futures (options ticker: IBYO) will be options on the underlying IBHY futures. The price of IBHY futures is based on the iBoxx^® iShares^® $ High Yield Corporate Bond Index (IBXXIBHY Index), which is designed to measure the performance of U.S. dollar-denominated high yield corporate debt. 

Options on IBIG futures (options ticker: IBGO) will be options on the underlying IBIG futures. The price of IBIG futures is based on the iBoxx^® iShares^® $ Investment Grade Corporate Bond Index (IBXXIBIG Index), which is designed to measure the performance of U.S. dollar-denominated investment grade corporate debt.

The new IBYO and IBGO options will have American-style exercise, will be physically-settled, will have P.M. settlement and will trade electronically on CFE during regular trading hours, from 9:30 a.m. to 4:00 p.m. ET. Initially, CFE may list for trading options on futures on up to four near-term serial months and four months on the March quarterly cycle for each product. The options on futures will expire on the same day as the underlying futures contract. The contracts will be cleared through OCC and be regulated by the Commodity Futures Trading Commission (CFTC). 

The extended trading to global hours is planned for IBHY and IBIG futures only and will cover a 23-hour time period per weekday running Monday through Friday. The extended trading hours session begins the prior day at 6:00 p.m. ET and runs until 9:30 a.m. ET of the current day (trading for the Monday trading day would begin Sunday evening). Regular trading hours run from 9:30 a.m. ET to 4:00 p.m. ET of the current day and are then followed by an extended trading hours session from 4:00 p.m. ET to 5:00 p.m. ET of the current day. 

To learn more, visit IBHY/IBIG-Cboe Corporate Bond Index Futures.  

Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

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Cboe®, CFE® and Cboe Global Markets® are registered trademarks and Cboe Futures Exchange^SM is a service mark of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners. 

Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts. Certain risks associated with options, futures, and options on futures and certain disclosures relating to information provided regarding these products are also highlighted at https://www.cboe.com/us_disclaimers. 

Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Investors should undertake their own due diligence regarding their securities, futures and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein. Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation. 

The iBoxx iShares $ High Yield Corporate Bond Index and the iBoxx iShares $ Investment Grade Corporate Bond Index ("iBoxx iShares $ Corporate Bond Indices") are products of S&P Dow Jones Indices LLC or its affiliates or licensors ("S&P DJI") and have been licensed for use by Cboe Exchange, Inc. iBoxx®, S&P®, "S&P 500® and "Dividend Aristocrats® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by Cboe Exchange, Inc. Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index futures and options on futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index futures and options on futures are not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the iBoxx iShares $ Corporate Bond Indices.

The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the "Indexes"), futures contracts on the Indexes and options on futures contracts on the Indexes ("Contracts") are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, "BlackRock"). BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG, LQD or any subset of fixed income securities.  

BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise the Indexes ("Underlying Data"). BlackRock is not responsible for and has not participated in the determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or in the determination or calculation of the equation by which the Contracts are to be converted into cash (if applicable). BlackRock has no obligation or liability in connection with the administration or trading of the Contracts. BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto.  

BlackRock makes no warranty, express or implied, as to results to be obtained by S&P DJI, the parties to the Contracts or any other person with respect to the use of the Underlying Data or any data included therein. BlackRock makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Data or any data included therein. Without limiting any of the foregoing, in no event shall BlackRock have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) resulting from the use of the Underlying Data or any data included therein, even if notified of the possibility of such damages.  

iShares® is a registered trademark of BlackRock Fund Advisors and its affiliates. 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. 

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. 

Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel, including compensation inflation; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our indices; our ability to manage our growth and strategic acquisitions or alliances effectively;  our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and operating a digital asset business and clearinghouse, including the expected benefits of our Cboe Digital acquisition, cybercrime, changes in digital asset regulation, losses due to digital asset custody, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings made from time to time with the SEC. 

We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. 

SOURCE Cboe Global Markets

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