View Full Version : CBOE To List Options On Two New Metals ETF Products: iShares Comex Gold Trust & iSha

6th December 2008, 21:01

CBOE To List Options On Two New Metals ETF Products: iShares Comex Gold Trust & iShares Silver Trust

Chicago Board Options Exchange (CBOE) today announced that beginning Monday, Dec. 8, the Exchange will list options on two new precious metals exchange-traded funds (ETFs) - iShares COMEX Gold Trust and iShares Silver Trust (CBOE ticker symbols: IAU and SLV, respectively). The U.S. Securities and Exchange Commission (SEC) approved CBOE's filing late on Thursday.

The iShares COMEX Gold Trust and iShares Silver Trust are ETFs that seek to reflect the performance of the price of gold bullion and silver bullion, respectively, less the trusts' expenses.Both trusts hold physical metals.

The Designated Primary Market Maker (DPM) for these ETF options is Barclays Capital. Both contracts, specifying American-style expiration, will trade on the January expiration cycle, with introductory expirations in December, January, April and July.

Initial strike prices for IAU are in five-point increments and range from 65 to 85. Position limits are 20 million options contracts. Strike prices for SLV range from 5 to15 in one-point increments. Position limits are 25 million option contracts.

Last June, CBOE introduced its first-ever options product on a precious metals ETF - the SPDR Gold Trust ETF (GLD) - after receiving regulatory approval from the SEC.Average daily volume (ADV) in GLD has been impressive, ranging from 12,000 contracts ADV in its first month of trading to as high as more than a 40,000-contract-per-day average in August.

Chicago Board Options Exchange (CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX), the world's barometer for market volatility. Other groundbreaking products engineered by CBOE include equity options, security index options, LEAPS, FLEX options, and benchmark products such as the CBOE BuyWrite Index (BXM). CBOE's Hybrid Trading System incorporates electronic and open-outcry trading, enabling customers to choose their trading method.CBOE's Hybrid is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports the CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and www.cboe.com, named "Best of the Web" for options information and education.

CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the AAA-rated Options Clearing Corporation.