The Super Bowl of Indexing Conference is an annual conference developed by Information Management Network (IMN) and sponsored by more than fifty investment banks, brokerages, exchanges and index providers from around the world. In its ninth year, the event is attended by industry professionals and academics seeking in-depth information and analysis on a broad spectrum of financial instruments and concepts. CBOE received two of the four Index Products awards.
"We are extremely proud to be selected by such a prestigious group to receive these two very important awards. CBOE has essentially created two new asset classes by developing the BuyWrite Index and Volatility products, and we are pleased that the hard work and investment in innovation made by CBOE and its partners is recognized by this premiere group of industry professionals," said CBOE Chairman and CEO William J. Brodsky.
"I would especially like to recognize our partners for their work in bringing these revolutionary new products to the marketplace," Brodsky continued. "Neither of these products would exist without our partnership with Standard & Poor's. I would also like to salute our colleagues at Goldman Sachs for their invaluable contribution to the development of the VIX Futures product. We thank both Goldman Sachs and Standard & Poor's for their continued support in making these products a success."
About the CBOE S&P 500 BuyWrite Index (BXM)
Created and introduced by CBOE in April 2002, the BXM measures the performance of a theoretical portfolio that sells (or "writes") Standard & Poor's 500 Index call options (SPX) against a portfolio of the stocks included in the Standard & Poor's 500 Stock Index (S&P 500). The index has become the standard benchmark for investors and investment professionals seeking a long-term track record of the buy-write strategy.
Since its introduction, more than five licenses have been granted for the creation of investment products based on the methodology and performance of the BXM.
In October 2004, Ibbotson Associates, a leading independent research firm specializing in asset allocation, concluded in a published study, that the CBOE BXM has had the best risk-adjusted performance of the major domestic and international equity-based indexes over the last 16 years. Other findings of the Ibbotson study include:
- Over the last 16 years the CBOE BXM Index had slightly higher returns and significantly less volatility than the S&P 500 and other stock indexes.
- The risk-adjusted return for the CBOE BXM strategy was 38% higher than that of the S&P 500 for the same time period.
- The BXM buy-write strategy has collected options premium income at an average rate of 1.69% of the underlying asset value, per month, over the 190-month period studied.
