The BOX Options Exchange announced today it received SEC approval to offer Jumbo SPY to its customers. SPDR S&P 500 ETF (SPY) is currently the most widely recognized ETF in the U.S. and tracks one of the most popular indexes in the world, the S&P 500 Index. Jumbo SPY Options are a new options contract overlying 1,000 SPY ETF shares per contract, as compared to 100 shares per contract for standard options.
“BOX is excited to respond to customer needs by offering Jumbo SPY,” said Tony McCormick, CEO of BOX. “Jumbo SPY creates both fee and price competition across ETFs and index products, and gives market makers another tool to hedge their portfolios.
”Jumbo 1,000 share SPY contracts are designed for institutions and customers who are looking for a greater notional value and the physical settlement that ETF options offer. BOX expects to start trading Jumbo SPY on Friday, May 10.
“The Jumbo SPY is attractive for institutional traders who prefer larger-sized contracts as it gives them the ability to buy and sell without moving through price points in the market,” said Ed Boyle, senior vice president of strategy at BOX. “Offering Jumbo SPY opens up a broader offering and greater flexibility to BOX customers.”
