Edward Tilly
CBOE CEO
CBOE Risk Management Conference Asia Welcome Remarks
Tuesday, December 1, 2015
8:30 – 9:00 a.m.
Thank you, Paul. And thanks to all of you for joining us for CBOE’s 1st Annual Risk Management
Conference (RMC) Asia.
First allow me to dispense with a legal formality by saying that our comments may contain forwardlooking statements which involve some risks and uncertainties. Actual results may vary. Please refer to
our filings with the SEC for more detailed information about the risks and uncertainties.
It is an honor to be here in Hong Kong with you. This year we held our 4 th annual RMC Europe and we
look forward to hosting our 32nd RMC U.S beginning February 29th in Bonita Springs, Florida. We are
delighted that you have joined us for our inaugural event in Asia.
I’m very pleased to say that Paul Stephens and his team have created a high-caliber agenda for this
event and, as is typical of RMC, we limit the number of speakers per session so that each topic is
covered in depth. Our trademark sessions are conducted by and for market participants, which also
provides unique value to RMC.
Before introducing our keynote speaker, I have a few CBOE updates I hope will be of interest, beginning
with some VIX highlights.
We launched VIX Weeklys futures in July and VIX Weeklys options in October. We worked closely with
our VIX user base to develop a short-term volatility product that more closely tracks the VIX Index and
fills the gaps between monthly VIX expirations.
I am pleased to report on the strong debut for each product. VIX Weeklys open up a new array of
strategies and opportunities, many of which will be covered here at RMC by “real” VIX experts, so I will
move on to other VIX news.
Expanding access to VIX trading access for our customers here in Asia and beyond is a top priority for
CBOE. We made great strides toward that goal with the implementation of near 24-hour trading in VIX
futures in June 2014.
This year we launched an additional six-hour session in VIX options, as well as in S&P 500 Index (SPX)
options. SPX options – which enable investors to efficiently take a position on the U.S. market – have
tremendous appeal here in Asia and, indeed, throughout the world.
The new VIX and SPX options session begins at 2:00 a.m. Chicago time, which aligns with the market
open in London and the close in Asia.
In other SPX news, CBOE created a series of 10 options-based strategy performance benchmark
indexes using SPX Weeklys options to create new versions of the CBOE S&P 500 BuyWrite and
PutWrite (PUT) Indexes, as well as new risk-managed option selling strategies featuring SPX and VIX
options.
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Our friends at S&P Dow Jones Indices and the Japan Exchange Group (JPX) recently introduced the
S&P/JPX JGB VIX Index, which employs CBOE’s VIX methodology to calculate the volatility of Japanese
government bonds based on futures listed on the Osaka Exchange. This Japan VIX is the second of its
kind in the global fixed-income space, after the CBOE/CBOT 10-year U.S. Treasury Note Volatility Index
(TYVIX Index).
This is, of course, a potentially opportune time in the interest rate marketplace. We were pleased to
partner with the London Stock Exchange Group (LSEG) and major dealer banks in the launch and
development of CurveGlobal, an innovative trading venue expected to launch in the second quarter of
2016.
CurveGlobal will initially offer trading in futures based on major European interest rates, with additional
products, including potential new products from CBOE, expected to follow.
CBOE also partnered this year with MSCI to launch options on the MSCI EAFE and MSCI Emerging
Markets (EEM) Indexes. We are very excited about what this means for customers and are currently
focused on building liquidity in these products.
In other product news, I am pleased to announce today CBOE’s launch of options on the FTSE China 50
and FTSE 100 Indexes.
The new products are expected to begin trading at CBOE on December 22. For more information,
copies of the press release are available in the back of the room.
We are excited to offer options on these two premier FTSE Russell global benchmarks, which were
made possible by an agreement forged earlier this year making CBOE the exclusive U.S. provider for
cash-settled options on numerous FTSE and Russell Indexes.
CBOE subsequently became the exclusive U.S. home for Russell 2000 Index options (RUT) on April 1st.
We launched options on three additional Russell indexes: the Russell 1000, 1000 Value, and 1000
Growth indexes in October.
Last week we introduced five new options-based strategy performance benchmark indexes tied to the
Russell 2000 Index, including a CBOE Russell 2000 PutWrite Index. Copies of that press release are
also available in the back of the room.
In other benchmark news, we also developed four new indexes in collaboration with Eurekahedge, a
Singapore-based hedge fund research company. The new indexes, which measure the performance of
hedge funds that employ distinct volatility-based investment strategies, are the first of their kind. We are
delighted that Eurekahedge Chairman Satoshi Iwanaga will moderate this afternoon’s panel on hedge
funds and volatility-based strategies.
I would like to mention a few additional conference attendees who are part of the growing CBOE family
and whose participation here in Hong Kong adds significant value to RMC. We are thrilled to continue to
roll out new products with both new and long-term partners and collaborators, and are pleased to have
members of the S&P Dow Jones and FTSE Russell teams here at RMC to engage with you throughout
the conference.
We also welcome our partners from Tradelegs here to demo their newly updated Derivatives Strategist
software, which generates optimized trade ideas based upon an investor’s equity risk and return
predictions, the investor’s capital constraints, and market data supplied by Tradelegs.
The timing for a demo could not be better as the updated software includes support of index options,
beginning with SPX, and a portfolio hedger feature we think you will find interesting. The Tradelegs team
is more than happy to walk you through the new features.
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In closing, I would like to reiterate how thrilled we are for the opportunity to meet with you in Asia, where
we continue to see great demand for our products. RMC Asia represents one of two new significant
customer initiatives in the region.
It is my pleasure next week to travel to Singapore to help launch the CBOE Options Institute at the
Singapore Exchange (SGX).
CBOE has long been committed to expanding the options and volatility marketplace through investor
education. Much of our educational mission is conducted through the world-renowned CBOE Options
Institute, which has seen growing demand from Asian market participants.
The CBOE Options Institute at SGX will leverage CBOE’s options expertise with SGX’s position in the
region to respond to the tremendous interest we see for options and volatility trading in Asia.
We are thrilled that our first global extension of the Options Institute will be in Asia and we are equally
thrilled to host our first RMC Asia here in Hong Kong. Working closely with customers like you, in
forums like this one, helps us create products and services that add value to your trading experience and
expertise.
I encourage you to share your thoughts and questions with me or anyone from the CBOE team. The
ability to connect with you one-on-one, formally or informally, is one of the many benefits of RMC. We
look forward to getting to know you better in this wonderful setting.
Thank you again for joining us.
----Now, it is my pleasure to introduce this morning’s distinguished keynote speaker, Krag “Buzz” Gregory,
equity derivatives strategist at Goldman Sachs.
Buzz is a pioneer in the volatility space and an authority on VIX options and futures trading. As a
member of the Options Research Team at Goldman, he covers macro derivative products, including
equity index options, variance swaps and VIX products.
He joined Goldman in 2000, specializing in volatility and hedging strategies. In 2003, Buzz and his team
were instrumental in working with CBOE to refine the VIX methodology. In 2011, he was named
Managing Director.
He has been a frequent attendee and popular speaker at RMC, and we’re delighted he’s joined us once
again this year.
Please join me in welcoming Buzz Gregory.
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