Transcript Presentation title goes here - Chicago Board Options Exchange

CBOE Press Breakfast at FIA
Boca Raton, FL
March 11, 2015
Edward Tilly, Chief Executive Officer
John Deters, Chief Strategy Officer
Bill Speth, Vice President, Research
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Forward-Looking Statements
This presentation may contain forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are those statements that reflect
our expectations, assumptions or projections about the future and involve a number of risks and
uncertainties. These statements are only predictions based on our current expectations and
projections about future events. There are important factors that could cause actual results to differ
materially from that expressed or implied by the forward-looking statements, including: the loss of our
right to exclusively list and trade certain index options and futures products; increasing price
competition in our industry; compliance with legal and regulatory obligations, including our obligations
under the Consent Order; decreases in trading volumes or a shift in the mix of products traded on our
exchanges; legislative or regulatory changes; increasing competition by foreign and domestic entities;
our dependence on third party service providers; our ability to operate our business without violating
the intellectual property rights of others and the costs associated with protecting our intellectual
property rights; our ability to accommodate trading volume and transaction traffic, including significant
increases, without failure or degradation of performance of our systems; our ability to protect our
systems and communication networks from security risks, including cyber-attacks; the accuracy of our
estimates and expectations; economic, political and market conditions; our ability to maintain access
fee revenues; our ability to meet our compliance obligations, including managing potential conflicts
between our regulatory responsibilities and our for-profit status; our ability to attract and retain skilled
management and other personnel; our ability to manage our growth effectively; and the ability of our
compliance and risk management methods to effectively monitor and manage our risks.
More detailed information about factors that may affect our performance may be found in our filings
with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2014
and other filings made from time to time with the SEC.
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Collaborate
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Connect
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2014
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2015
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Collaborate
Growing roster of CBOE index providers
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Collaborate
CBOE is the home for index options
CBOE created the first index option with Standard and Poor’s
in 1983
CBOE’s S&P 500 Index (SPX) options remain the most-actively
traded index option in the U.S.
Record SPX options trading volume in 2014, the 31st year for
the product
Continually seeking ways to further develop and grow index
options trading
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Collaborate
CBOE entered into MSCI licensing agreement in December
Combines CBOE’s product development and options expertise
with MSCI’s global benchmark indexes
Makes CBOE exclusive U.S. exchange for trading MSCI Index
options
MSCI Indexes cover global equity and emerging markets
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Collaborate
CBOE entered into LSEG licensing agreement in February
Combines CBOE’s product development and options
expertise with LSEG’s leading index franchises
Makes CBOE exclusive U.S. provider for cash-settled options
on LSEG-owned FTSE and Russell Indexes
FTSE Indexes cover European and Asian international
equities
Russell Indexes cover benchmarks on U.S.-based stocks
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Create
CBOE-MSCI products
First CBOE-MSCI options* to launch on April 21: (press release)
MSCI EAFE Index (Europe, Australasia, Far East)
MSCI Emerging Markets Index
Additional CBOE-MSCI options* products planned to launch going
forward:
MSCI ACWI Index
MSCI USA Index
MSCI World Index
MSCI ACWI ex-USA Index
Opportunity to create new volatility indexes
*Pending regulatory approval
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Create
CBOE-Russell products
Includes options on the Russell 2000 Index (RUT)#, the premier
measure of the performance of U.S. small-cap stocks
Other CBOE-Russell products* to include options on:
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Russell 1000 Index
Russell 1000 Value Index
Russell 1000 Growth Index
CBOE Russell 2000 Volatility Index (RVX) options and futures already
trading
Opportunity to create new volatility indexes
#Currently
trading semi-exclusively at CBOE, will be exclusively traded at CBOE on April 1, 2015
*Pending regulatory approval
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Create
CBOE-FTSE products
Includes options on the FTSE 100 Index, a closely followed index
of blue-chip companies traded on the London Stock Exchange
Other CBOE-FTSE products* to include options on:
FTSE GEIS
FTSE EPRA/NAREIT
FTSE China 50
Opportunity to create new volatility indexes
*Pending regulatory approval
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Connect
CBOE’s expanding suite of index products will allow market
participants to trade and hedge:
Global Volatility
Global Stock Market
Broad U.S. Stock Market
U.S. Small-Cap Market
European and Asian International Equities
World’s Emerging Markets
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Connect
CBOE connects uniquely with customers, domestically and
abroad, through:
Investor education
Customer engagement
Broadening access to our marketplace
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Connect
Connecting with customers through industry-leading
educational forums
CBOE Risk Management Conference (RMC)
Premier financial industry conference for institutional
users of equity and volatility derivatives
United States: 31st year
Europe: 4th year
Asia: 1st year
CBOE Options Institute
Teaching investors around the world through an
extensive curriculum of classroom and online
programs
30th anniversary in 2015
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Connect
Leveraging CBOE’s customer reach across highly trafficked
communications outlets
CBOE.com
CBOE TV
The Options Hub, CBOE’s
social media platform
CBOE’s Mobile App
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Connect
Connecting with customers through extended trading hours (ETH)
Near 24-hour trading in VIX futures began last June
Currently, about 9% of VIX futures trading takes place during non-U.S.
trading hours
ETH for VIX options began Monday, March 2; ETH for SPX options began
Monday, March 9
New session runs from 2:00 a.m. to 8:15 a.m. CT, Monday through Friday
ETH initiatives pave the way to trade additional index products in non-U.S.
hours in the future
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Q&A
CBOE
400 South LaSalle Street
Chicago, Illinois 60605
www.cboe.com
@CBOE