Software uses proprietary analytics to assist institutional investors in developing options strategies
CHICAGO and BOCA RATON, Fla., March 12, 2014 /PRNewswire/ -- CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that it plans to invest in Tradelegs, the developer of advanced decision-support software that institutional investors can employ to optimize investment performance.
Institutional subscribers to Tradelegs Derivatives Strategist software - from hedge funds and mutual funds to pension funds and insurance firms - can enter their views on given securities into Tradelegs' analytics platform. Derivatives Strategist calculates the result of numerous combinations of options/underlying positions that correspond to the user's specific trading view and risk parameters -- maximum capital available, worst-case risk and probability of price movements -- and identifies the potential trade or trades that incorporate those parameters.
"Our planned investment in Tradelegs is a natural fit for CBOE. The technology's application supports our strategic objective to further expand the institutional use and appeal of options trading, including with our proprietary index products," CBOE Holdings CEO Edward T. Tilly said. "Tradelegs' advanced analytics and intuitive software make it a valuable trading resource for institutions that want an uncomplicated way to formulate options-based strategies that could enhance their equity positions."
"We couldn't be more pleased that CBOE, the world's leader in index option and volatility trading, recognizes our potential to penetrate the institutional market with a program that could help users more efficiently generate options strategies that might be employed to optimize investment performance," said Gideon Agar, CEO of Tradelegs. "CBOE's investment should allow us to further expand our options optimization services, including the capability to cover portfolios of securities sometime this year."
The investment is subject to the execution and delivery of a definitive agreement between CBOE and Tradelegs.
For more information on Tradelegs, go to www.tradelegs.com.
Certain information contained in this news release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and are subject to a number of risks and uncertainties.
About CBOE Holdings:
CBOE Holdings, Inc. (NASDAQ: CBOE) is the holding company for Chicago Board Options Exchange (CBOE), the CBOE Futures Exchange (CFE) and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute and www.cboe.com, the go-to place for options and volatility trading resources.
CBOE®, Chicago Board Options Exchange®, CBOE Volatility Index®, CFE®, FLEX®, LEAPS® and VIX® are registered trademarks, and BuyWrite, BXMSM, CBOE Futures ExchangeSM, Execute SuccessSM, SPXSM and The Options InstituteSM are service marks of Chicago Board Options Exchange, Incorporated (CBOE). Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by CBOE and CFE.
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SOURCE Chicago Board Options Exchange
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