Chicago Board Options Exchange (CBOE)'s newly approved futures exchange is raising some eyebrows among industry executives who believe the market has potential.
CBOE Futures Exchange received approval from Commodity Futures Trading Commission on 7 August but the exchange has neither announced plans for contracts nor a launch date. CBOE currently trades cash-settled index options on approximately 40 indices and plans to list some of them as futures contracts, according to the CFTC announcement. But a CBOE spokesperson declined to comment any further on the new futures market.
Futures and options industry veterans say CBOE Futures Exchange can succeed, even with established exchanges such as Chicago Board of Trade (CBoT) and Chicago Mercantile Exchange (CME) and the looming entrance of Eurex's futures and options markets in the US. CBOE is already fighting to regain the...