Cboe and Metaurus Launch Innovative U.S. Equity Index

Cboe and Metaurus Launch Groundbreaking U.S. Equity Index

Cboe Global Markets, Inc. (Cboe: CBOE) and Metaurus Advisors, LLC have officially unveiled their new index initiative, the Cboe U.S. Large-Mid Cap 100 Index (CEQX). This exciting collaboration aims to broaden access to innovative trading strategies and enhance market dynamics for investors seeking to leverage equity performance.

Overview of the Cboe U.S. Large-Mid Cap 100 Index (CEQX)

The CEQX Index is strategically designed as an equal-dollar-weighted index comprising 100 prominent large- and mid-cap U.S. stocks. With a quarterly rebalancing mechanism, it mirrors the sector capitalization weightings of leading companies listed on U.S. exchanges, making it a reliable point of reference for market performance evaluation.

Future Indices and Expansion Plans

Following the launch of the CEQX Index, Cboe and Metaurus are set to roll out three additional indices – the Cboe Lead 50 Index, the Cboe Lag 50 Index, and the Cboe U.S. Large-Mid Cap 100 Cumulative Return Index. These indices are expected to debut in early 2025, marking a significant step in their combined index offerings.

Accessibility and Tools for Traders

Rob Hocking, Global Head of Product Innovation at Cboe, expressed enthusiasm about the index's potential, stating, "The launch of CEQX represents an important advancement in making dispersion trading more accessible to a broader range of trading participants. We're committed to providing effective tools that empower traders to tap into new market opportunities." This innovation reflects a growing trend in dispersion trading, where participants are keen to exploit differences in volatility between index options and specific stock options.

The Cboe Lead 50 and Lag 50 indices, derived from the CEQX Index, will specifically track the total returns of the best and worst-performing companies within the Cboe U.S. Large-Mid Cap 100 Index on a quarterly basis. Monitoring these indices offers investors insights into realized dispersion, a critical measure of how independently the stocks within a diversified portfolio move.

Significance of the New Indices

According to Richard Sandulli, Co-CEO of Metaurus, "The CEQX Index will be foundational for the Lead 50 and Lag 50 indices. They provide a novel way for the market to measure realized dispersion and open up innovative prospects for financial asset securitization." This speaks to a pressing need for investment strategies that adapt to market volatility and performance metrics.

Administration and Index Performance

The administration of the CEQX Index will be managed by Cboe Global Indices, recognized for its extensive portfolio of innovative derivative-based indices, including volatility indices and cryptocurrencies. Investors can readily access the real-time value of the CEQX Index and other indices via the Cboe Global Indices Feed, ensuring that they have timely information to make informed trading decisions.

Cboe’s Commitment to Global Markets

Cboe Global Markets stands at the forefront of innovative trading solutions, offering a spectrum of products in asset classes like equities, derivatives, and foreign exchange across various regions. With a dedication to building an inclusive global marketplace, Cboe remains focused on enabling sustainable financial futures for all their clients.

Getting to Know Metaurus Advisors, LLC

Metaurus Advisors, recognized for its SEC-registered investment advisory services, brings a wealth of experience in developing avant-garde derivatives and structured products. Their expanding intellectual property portfolio supports diverse strategies employed across public and private investments aimed at uncovering novel revenue streams for investors.

Frequently Asked Questions

What is the Cboe U.S. Large-Mid Cap 100 Index (CEQX)?

The CEQX Index is an equal-dollar-weighted index that consists of 100 large- and mid-cap U.S. stocks, designed to replicate sector capitalization weightings on U.S. exchanges.

When was the CEQX Index launched?

The CEQX Index was launched on December 20, 2024, as the first among several planned indices by Cboe and Metaurus.

What are the future indices associated with CEQX?

Upcoming indices include the Cboe Lead 50 Index, the Cboe Lag 50 Index, and the Cboe U.S. Large-Mid Cap 100 Cumulative Return Index, anticipated for introduction in early 2025.

How do the Lead 50 and Lag 50 indices work?

The Lead 50 and Lag 50 indices track the top and bottom 50 performers from the CEQX Index, providing insight into their respective quarterly performance.

Who administers the CEQX Index?

The Cboe Global Indices manages the CEQX Index, contributing to a robust suite of innovative index offerings.

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