Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index: 82,726.74 -411.34

CBOE Plans To Launch Mini-NDX (MNXSM) On Monday, August 14, 2000.

Date 06/08/2000

The CBOE is launching options on the Mini-NDX index (ticker symbol MNXSM) in order to offer investors more flexibility in managing their tech-oriented equity portfolios.

The MNX index has a price based on 1/10 the value of the NDX index, so, for example, if the NDX index is at 3800, the MNX will be 380.

MNX index options have a multiplier of 100, thus, if the MNX price level is 380, an investor could consider hedging $38,000 of equity exposure with one MNX options contract.

Background

The CBOE began trading options on the popular Nasdaq-100 index (ticker symbol NDX) in 1994.

In light of the several factors, including

In recent years the Nasdaq-100 price level has soared - growing by more than 380% from January 1998 through March 2000; The NDX has experienced high volatility (over 60) and price/earnings ratios (over 160) in the past year; Demand for Nasdaq-100 index risk management and investment tools has grown; customers have requested that the CBOE introduce a smaller version of the NDX to give customers more choice in managing their tech-oriented positions.