In Case You Missed It: Monthly Highlights from Cboe
Despite our “new normal,” April was a busy month at Cboe™, and we have plenty of updates and market innovations to share — starting with a new #CboeListed product and ending with some thought leadership from Ed Tilly. Follow us on Twitter for daily updates as we continue defining markets and check back here at the end of May for our next monthly update.
The First Semi-Transparent ETFs List for Trading at Cboe
On April 2, American Century Investments listed two Semi-Transparent ETFs on Cboe. The innovative Cboe-listed ETFs are the first of their kind, revolutionizing investing and paving the way for a new category of ETFs. Though similar to a standard ETF in terms of affordability, tax advantages and liquidity, Semi-Transparent ETFs are only required to disclose holdings quarterly, like mutual funds. This disclosure method enables asset managers to take advantage of the liquidity and tax-advantage benefits of the ETF structure, while keeping their proprietary strategy hidden to protect shareholders.
Federal Banking Agencies Expedite Approval of SA-CCR
As investors grapple with the impact of COVID-19, it’s crucial that exchanges, regulatory and banking agencies work together to keep capital markets running and working as efficiently as possible. At the beginning of April, Cboe commended several regulatory agencies for authorizing the early adoption of the Standardized Approach to Counterparty Credit Risk (SA-CCR) by banking organizations. The authorization is expected to help strengthen current options market liquidity during a time of unprecedented market turbulence.
SEC Approves Cboe ETF Listing Rule
In early April, the Securities and Exchange Commission approved Cboe’s request to create a new listing rule that aligns Cboe’s ETF listing standards with the SEC’s ETF Rule (6c-11). Under the new Cboe ETF Listings Rule, ETFs that meet the requirements of Rule 6c-11 may be listed without meeting the additional quantitative portfolio holdings requirements that have historically applied to ETFs. This approach streamlines product development and legal efforts for issuers by aligning the regulatory requirements between the SEC and the exchange and provides issuers with a greater degree of certainty from a time to market and regulatory perspective. In addition to the new ETF Listing Rule, the SEC also allowed Cboe to remove the exchange requirement for issuers to disseminate an Intraday Indicative Value (IIV) for ETFs that disclose their holdings on a daily basis.
Cboe Equities Update: April 16
Adam Inzirillo, Head of U.S. Equities, reached out to clients with several key updates about Retail Priority and Midpoint Discretionary Order (MDO), as well as insights into recent volume and volatility. Within the update, Adam details how fill rate for Retail Priority Orders continues to improve as the number of shares filled per second surges across retail orders and introduces Quote Depletion Protection (QDP). When activated, QDP would disable discretion for a limited period to prevent participants from trading in undesirable circumstances – like buying right before a price declines or selling right before it rises.
Celebrate Earth Day with Sustainable Investing
The importance of ESG, or Environmental, Social and Governmental, initiatives has grown rapidly within the past few years – especially in the finance industry. At Cboe, we are guided by our commitment to being better global citizens as we regularly seek new ways to reduce our environmental impact and give back to our local communities. We know we are part of a worldwide effort by companies and individuals who are searching for sustainable solutions in every aspect of their life, including investing. In celebration of Earth Day, we compiled a list of Cboe Listed ESG-focused ETPs below, ranging from funds comprised of companies in the clean energy sector to those with a significant number of women in leadership.
A Message from Cboe Europe President David Howson
Cboe Europe President David Howson provided an update to Cboe Europe customers and market participants at the end of April. David shared market updates regarding record volume across many of Cboe Europe’s platforms, including Periodic Auctions and Cboe LIS, as well as more information about Cboe’s planned acquisition of pan-European clearing house EuroCCP. David also shared more insights into Cboe’s response to ESMA’s MiFID II/ MiFIR review report on the transparency regime for equity and equity-like instruments.
What to Know About the Cboe and FTSE Russell Combination
Cboe recently strengthened its strategic relationship with FTSE Russell, a leading provider of market capitalization weighted indices, by extending its 2015 exclusive licensing agreement through 2030. As we look forward to the next decade of innovation with FTSE Russell, we’re looking back on the past five years of this great collaboration. Visit the Cboe blog for the ins and outs of Cboe and FTSE Russell’s relationship.
Reflecting on 47 Years of Defining Markets
Sunday, April 26, marked the 47th anniversary of Cboe Global Markets’ founding. But this global pandemic has shown that even after 47 years, the core purpose of our business has not changed: we remain committed to providing a forum for investors to express their views on the market and manage their risk. Ed Tilly, Chairman, President and CEO, shares how Cboe continues to work for our customers, with our regulators and in our communities as we navigate the impact of COVID-19.
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