CHICAGO MARKETS IMPROVE AUTOMATION OF LINKED OPTIONS AND STOCK TRADES

Posted October 13, 2008

CHICAGO – The Chicago Board Options Exchange (CBOE) and the CBOE Stock Exchange (CBSX) announced today that they are now offering fully automated executions for combined option and stock trades through a single electronic platform. The combination of these executions in one platform will make it possible to trade the stock and options legs of any position in a one-to-one ratio, including execution of “buy-write” or “married put” hedging trades, or any trade combining different stock and option orders. Added benefits for traders include faster executions and the opportunity for price improvement.   

“For options traders executing buy-write or other combined stock and option orders, this new automation creates greater efficiency in the overall execution process,” says William Brodsky, Chairman and Chief Executive Officer, CBOE.  “Over the last five years, CBOE has been an industry leader in developing buy-write benchmarks and product offerings. Creating a means for the electronic execution of these types of trades is the natural extension of our efforts to elevate the strategy’s profile and will only serve to foster even greater awareness and use of CBOE’s BuyWrite products.”