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"CBOE formulated reduced-value options on the Russell 2000 index in response to investor demand for smaller, retail-sized, index options with point-and-click functionality. In keeping with our "best-of-both-worlds" approach to trading, CBOE will continue to trade full value options on the Russell 2000 Index in open outcry. Options on the reduced value contract will be offered on our Hybrid Trading System. We are pleased to continue work with the Russell Investment Group in bringing index option innovations to the marketplace," said CBOE Chairman and CEO William J. Brodsky.
"We applaud CBOE's introduction of this innovative product based on Russell indexes," said Kelly Haughton, strategic director for Russell indexes. "The smaller value size should prove popular for particular investors who seek more precise risk control."
Options on the reduced-value CBOE RUT Index will be European-style exercise, cash settled options, based on 1/10 of the value of the Index. CBOE will name a Designated Primary Market Maker (DPM) in the options.
The Russell 2000 Index (ticker symbol RUT) is designed to measures the performance of the 2,000 smallest companies from a universe of the 3,000 largest stocks in the U.S. The index is a capitalization-weighted and includes only common stocks belonging to U.S. corporations traded on the NYSE, NASDAQ or the AMEX.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at: http://www.cboe.com/.
