Credit Event Binary Options Cebos

CHICAGO, April 25, 2011 -The Chicago Board Options Substitution (CBOE) announced today that on Tuesday, April 26, the Commutation will continue its roll-out of Credit Event Binary Options (CEBO^®) with the improver of five new options classes based on financial firms: Bank of America Corporation (Ticker: BACD); JPMorgan Chase & Co. (Ticker: JPMD); Citigroup Inc. (Ticker: CITD); The Goldman Sachs Group (Ticker: GSSD); and Morgan Stanley (Ticker: MSTD).

CBOE re-launched newly-designed Credit Event Binary Options at the beginning of March with ten initial unmarried-name listings (http://www.cboe.com/micro/credit/AvailableCebos.aspx). Since then, there has been demand from market place participants for a machinery to protect confronting potential downside take a chance in the event of default by broker dealers.

Credit Consequence Binary Options contracts allow investors to express an opinion on whether a company volition feel a "credit upshot" (e.g., defalcation). Due to inverse correlations between credit and equity markets, CEBO contracts can be used as a hedging tool for individual issuers. The contracts likewise provide the advantages of price transparency available through a regulated exchange, currently unavailable in over-the-counter credit default swaps markets.

A CEBO contract has just two possible outcomes - a payout of a fixed amount if a credit outcome occurs or naught if a credit event does not occur.

Contract specifications for CEBOs, which first began trading in 2007, were revised this year. 1 change simplifies the terms of a payout for CEBO contracts, allowing CBOE to list CEBO contracts that specify bankruptcy as the only trigger for a payout. The size of the CEBO contract payout if a credit upshot occurs has also been revised. If a bankruptcy occurs prior to expiration of the specific contract, the corporeality of the payout will be $1,000 per contract.

For the v new classes that will exist added tomorrow, initial series expirations volition be December 2011, December 2012 and December 2013.

For contract specifications and other information most CEBOs, see www.cboe.com/credit.

CBOE, the largest U.Southward. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such every bit S&P 500 options (SPX), the nigh active U.S. index selection, and options on the CBOE Volatility Alphabetize (VIX). Other products engineered past CBOE include equity options, security alphabetize options, LEAPS options, FLEX options, and benchmark products such every bit the CBOE South&P 500 BuyWrite Index (BXM). CBOE's Hybrid Trading System incorporates electronic and open-outcry trading and is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that besides supports the C2 Options Exchange (C2), CBOE Futures Substitution (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and www.cboe.com, named "Best of the Web" for options information and educational activity.

CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared past the AAA-rated Options Clearing Corporation (OCC).

CBOE Media Contacts:
Gail Osten
(312) 786-7123
osten@cboe.com

Gary Compton
(312) 786-7612
comptong@cboe.com

Analyst Contact:
Debbie Koopman
(312) 786-7136
koopman@cboe.com

CBOE®, Chicago Board Options Exchange®, CBSX®, CBOE Stock Substitution®, CEBO®, CFE®, CBOEdirect®, FLEX®, Hybrid®, LEAPS®, CBOE Volatility Index® and VIX® are registered trademarks, and BuyWrite(SM), BXM(SM), SPX(SM), C2SM, C2 Options ExchangeSM, CBOE Futures Exchange(SM) and The Options Institute(SM) are servicemarks of Chicago Board Options Exchange, Incorporated (CBOE). Standard & Poor'south®, S&P® and South&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC. and have been licensed for use by CBOE. All other trademarks and servicemarks are the property of their respective owners.

Credit Event Binary Options Cebos,

Source: https://ir.cboe.com/news-and-events/2011/04-25-2011/cboe-add-five-new-credit-event-binary-options-cboes-financial-firms-april-26#:~:text=Credit%20Event%20Binary%20Options%20contracts,hedging%20tool%20for%20individual%20issuers.

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