The addition of DIAMONDS options brings the number of index options available for trading on the CBOE Hybrid Trading System to 36, including options on the S&P 500 Depositary Receipts (SPY), Mini-Nasdaq 100 Index (MNX) and Nasdaq-100 Index Tracking Stock (QQQ). All of CBOE's 1,761 equity options are traded on the Hybrid Trading System, which first launched in June 2003.
"We are extremely pleased to now offer the very popular DIAMONDS ETF options on our Hybrid Trading System, giving customers the ultimate combination of liquidity, speed of execution and transparency," said CBOE Chairman and CEO William J. Brodsky. "The Dow Jones Index-linked products have grown in popularity since CBOE first listed Options on the Dow, DJX, in 1997 and DIA options in 2002, as investors have become aware of their tremendous utility as a hedging tool, and as an efficient, low risk way to take a position on the direction of the market."
"On the very first day of DIA trading on the CBOE Hybrid, there were 21 market makers quoting, and displayed size was more than 12,000 contracts in some series. As more traders connect to DIA Hybrid, we expect to see even deeper liquidity," said CBOE Vice Chairman Edward T. Tilly.
DIAMONDS (ticker symbol DIA) represent shares in an exchange-traded fund designed to track the performance of the Dow Jones Industrial Average (DJIA), that trades like a stock. Options on DIAMONDS provide investors with exposure to the Dow Jones Industrial Average in one transaction, which can also offer the benefit of limited risk. Buyers of DIAMONDS options have pre-determined risk that is limited to the amount of premium paid. In addition to DIA, CBOE lists Options on the Dow (DJX) and six other options products based on Dow Jones Indexes.
The CBOE Hybrid Trading System is the first truly hybrid trading system, offering investors the advantages of point-and-click executions, combined with the liquidity and superior price discovery of an open outcry market.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the SEC. For additional information about the CBOE and its products, access the CBOE website at: http://www.cboe.com/
