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SP500-index options
- Thread starter FT79
- Start date
Quote from h hubbins:
some exchanges have paid for exclusive trading rights for certain products. this is likely to end as the exclusive contracts expire.
The Exchange didnât pay for the SPX they developed the product them selves and the deal with Standard & Poorâs is not subject to ending. There have been many law suits trying to break the proprietary listing but they have been unsuccessful. There are many other products which are proprietary products of other exchanges too, things like the SOX index and the OSX index.
Quote from xflat2186:
The Exchange didnât pay for the SPX they developed the product them selves and the deal with Standard & Poorâs is not subject to ending. There have been many law suits trying to break the proprietary listing but they have been unsuccessful. There are many other products which are proprietary products of other exchanges too, things like the SOX index and the OSX index.
Why were they unsuccessful in breaking it up? Options are not developed by CBOE and the SPX is a benchmark developed by S&P.
When in Holland the exchange moved from Open-Outcry to electronic trading more companies had easy access to the exchange with 2 advantages. (1) Spread went down (currently max 15 cents) and (2) volume increased big time. I think the AEX-index options (the SP500 of Holland) are now #3 in Europe if you look at the volume and spreads.
They have been fighting over the multi listing of options for many years, IN Aug of 1999 the CBOE broke the long standing truce and listed DELL, which had previously been single, listed in Philly. After that volley it was a free for all to list as much as you could all over. The only things spared were proprietary products developed by specific exchanges. So there is still stuff like the SPX and the SOX and others single listed on the exchange that developed that particular product and originally listed and marketed it.
The exchanges DO develop products
The exchanges DO develop products