Filed by CBOE Holdings, Inc.
pursuant to Rule 425 under the Securities Act of 1933, as amended
Subject Company: CBOE Holdings, Inc.
Subject Company’s Commission File No.: 333-140574
On January 2, 2009, the Chicago Board Options Exchange, Incorporated issued the following press release.
CBOE News Release
Chicago Board Options Exchange
400 S. LaSalle Street
Chicago, IL 60605
CBOE’S FIFTH STRAIGHT RECORD VOLUME YEAR:
1.19 BILLION OPTIONS (4.7 MILLION ADV) CONTRACTS
CHANGE HANDS
– Volume Up 26% Over 2007, with Equity, Index and ETF Options Records
– December 2008 Volume Up 1%, ADV Down 8% Against December 2007
CHICAGO, January 2, 2009 – Chicago Board Options Exchange (CBOE) today announced that 2008 was the busiest ever in its 35-year history as 1,193,355,070 contracts changed hands, a 26-percent increase over the 944,471,924 contracts traded in 2007. Average daily volume (ADV) of 4.7 million contracts beat 2007’s 3.8-million-contract ADV by 25 percent and capped off CBOE’s fifth consecutive year of record trading.
During December, CBOE trading volume totaled nearly 73 million contracts, a one-percent rise over December 2007. Average daily trading volume for the month dropped eight percent to 3.3 million contracts.
|
|
|
December |
|
% Change vs |
|
% Change vs. |
|
Year-To-Date |
|
% Change |
|
|
Industry Total |
|
221,367,212 |
|
-7 |
% |
-10 |
% |
3,582,572,581 |
|
25 |
% |
|
CBOE Total |
|
72,814,009 |
|
1 |
% |
-16 |
% |
1,193,355,070 |
|
26 |
% |
|
CBOE Total ADV |
|
3,309,728 |
|
-8 |
% |
-27 |
% |
4,716,818 |
|
25 |
% |
|
Equity |
|
37,694,746 |
|
1 |
% |
-11 |
% |
604,024,956 |
|
21 |
% |
|
Equity ADV |
|
1,713,398 |
|
-8 |
% |
-23 |
% |
2,387,450 |
|
20 |
% |
|
Cash-Settled Index |
|
16,119,239 |
|
5 |
% |
-19 |
% |
259,342,934 |
|
13 |
% |
|
Cash-Settled Index ADV |
|
732,693 |
|
-4 |
% |
-30 |
% |
1,025,071 |
|
12 |
% |
|
ETF Options |
|
18,971,321 |
|
-4 |
% |
-22 |
% |
329,830,388 |
|
55 |
% |
|
ETF Options ADV |
|
862,333 |
|
-13 |
% |
-33 |
% |
1,303,677 |
|
54 |
% |
|
Exchange Open Interest |
|
246,888,954 |
|
-11 |
% |
-12 |
% |
— |
|
— |
|
-more-
Equity, Index and ETF options
Total volume in equity options at CBOE during 2008 tallied a record 604.0 million contracts, an increase of 21 percent over the then-record 500 million contracts traded in 2007. Average daily volume in equity options trading rose to 2.4 million contracts, an increase of 20 percent compared to 1.6 million contracts per day during 2007. ETF options volume of 329.8 million contracts and index options volume of 259.3 million contracts also were annual records, besting 2007 totals by 55 percent and 13 percent, respectively. Daily volume in ETF options in 2008 averaged 1.3 million contracts, while index options averaged just more than one million contracts per day.
Expanded information on volume for index options and ETF options for December and 2008 as a whole is available at http://www.cboe.com/data/monthlyvolume.aspx.
CBOE’s 2008 Market Share Rises to 33.3 Percent
In 2008, CBOE’s overall market share rose to 33.3 percent, an increase of 0.3 percentage points over 2007 as measured against the six other U.S. options exchanges. In equity options, CBOE’s market share of 27.4 percent rose 1.7 percentage points over 2007’s 25.7 percent. CBOE index option market share rose 2.8 percentage points to 88.8 percent during 2008, while ETF option market share dropped 2.7 percentage points to 30.3 percent.
|
CBOE Market |
|
Dec 2008 |
|
% Pt. |
|
% Pt. |
|
Year-To-Date |
|
% Pt. |
|
|
Exchange |
|
32.9 |
% |
2.4 |
% |
-2.5 |
% |
33.3 |
% |
0.3 |
% |
|
Equity |
|
29.3 |
% |
5.8 |
% |
-0.6 |
% |
27.4 |
% |
1.7 |
% |
|
Index |
|
92.0 |
% |
6.9 |
% |
-1.0 |
% |
88.8 |
% |
2.8 |
% |
|
ETF |
|
25.2 |
% |
-7.2 |
% |
-4.7 |
% |
30.3 |
% |
-2.7 |
% |
Highlights in 2008
During 2008, trading in several index and ETF products logged volume gains over the previous year, including options on:
|
Contract |
|
Ticker |
|
2008 |
|
2007 |
|
% Chg |
|
|
S&P 500 Index |
|
SPX |
|
179,045,021 |
* |
158,084,691 |
|
13.3 |
% |
|
PowerShares QQQ Trust |
|
QQQQ |
|
61,210,641 |
* |
43,215,491 |
|
41.6 |
% |
|
S&P Depositary Receipts SPDR |
|
SPY |
|
96,901,151 |
* |
49,195,190 |
|
97.0 |
% |
|
CBOE Volatility Index |
|
VIX |
|
25,947,655 |
* |
23,388,366 |
|
10.9 |
% |
|
Financial Select SPDR |
|
XLF |
|
25,945,637 |
* |
6,768,699 |
|
283.3 |
% |
|
iShares MSCI Emerging Markets Index |
|
EEM |
|
13,712,568 |
* |
7,807,094 |
|
75.6 |
% |
|
Diamonds Trust, Series 1 |
|
DIA |
|
10,415,316 |
* |
7,965,019 |
|
30.8 |
% |
|
Energy Select SPDR |
|
XLE |
|
8,314,544 |
* |
3,182,532 |
|
161.3 |
% |
|
Mini S&P 500 Index |
|
XSP |
|
2,853,825 |
* |
1,535,570 |
|
85.8 |
% |
*Denotes all-time annual record.
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· Eighteen of the twenty busiest single trading days in CBOE’s 35-year history occurred during 2008, including the all-time, single-day leader – 9,975,464 contracts traded on September 18, 2008.
· The CBOE Volatility Index (VIX) experienced the widest range of daily closes ever in a calendar year during 2008 – 16.30 on May 15 (low of the year) to 80.86 on November 20 (high of the year); the average daily VIX closing level was 32.65 during the year. In addition, the Index closed above 50 on fifty trading days during the year, a level not reached before 2008. The CBOE Volatility Index is derived from real-time S&P 500 Index (SPX) options prices and is designed to reflect investors’ consensus view of expected near-term stock market volatility over the next 30 days. On November 21, the CBOE S&P BuyWrite Index (BXM) generated a gross premium of 8.1 percent, the highest amount in more than two decades.
· Trading in CBOE Volatility Index options continued its growth in 2008 as nearly 26 million contracts traded during the year, an increase of close to 11 percent over the previous record of 23.4 million contracts traded in 2007. Average daily volume rose to 102,560 contracts from 93,181 contracts in 2007. Options on VIX, launched in February 2006, already rank as CBOE’s second most-actively traded index option and have been the most successful new product launch in recent CBOE history.
· The CBOE Futures Exchange, LLC (CFE) announced that 2008 was the busiest year in its five-year history as volume totaled 1,161,019 contracts. Volume in 2008 rose two percent over 1,136,295 contracts traded last year and marked the fourth consecutive year of record annual trading volume at CFE. Average daily volume for the year was 4,589 contracts, compared to the year-ago average daily volume of 4,527 contracts. Volume in CFE’s most-actively traded contract, VIX futures, based on the CBOE Volatility Index (ticker VX), totaled a record 1,088,090 contracts during 2008, up four percent from 1,046,475 contracts traded in 2007, the previous high. On the year, average daily volume in VIX futures was 4,301 contracts, versus 4,169 contracts per day in 2007.
· In its second year of trading, volume at the CBOE Stock Exchange (CBSX) totaled 3,604,649,431 shares (average daily volume of 14,426,626 shares per day) versus 1,072,401,400 shares in 2008 (ADV 4,272,516 shares), up 236 percent. In December, 280,090,503 shares were traded, an average daily volume of 12,731,386. CBSX launched on March 5, 2007.
· A total of 111 CBOE memberships were sold during the year, ranging from $1.75 million to $3.3 million. All-time high sales were transacted during the summer – $3.3 million on June 18 and $3.2 million on June 17, surpassing the previous record price of $3.15 million set on December 11, 2007.
TOP 5 EQUITIES – DECEMBER 2008
|
UNDLY |
|
NAME |
|
TOTAL |
|
|
C |
|
Citigroup, Inc. |
|
1,624,308 |
|
|
GE |
|
General Electric Company |
|
1,495,540 |
|
|
GM |
|
General Motors Corporation |
|
1,405,785 |
|
|
JPM |
|
JPMorgan Chase & Co. |
|
1,015,300 |
|
|
AAPL |
|
Apple, Inc. |
|
886,554 |
|
TOP 5 INDEXES & ETFs - DECEMBER 2008
|
UNDLY |
|
NAME |
|
TOTAL |
|
|
SPX |
|
S&P 500 Index |
|
11,805,485 |
|
|
SPY |
|
Standard & Poor’s Depositary Receipts (SPDRs) |
|
6,800,929 |
|
|
QQQQ |
|
PowerShares QQQ Trust |
|
3,376,580 |
|
|
IWM |
|
iShares Trust - Russell 2000 Index Fund |
|
2,651,231 |
|
|
RUT |
|
Russell 2000 Index |
|
1,279,312 |
|
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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 Media Contacts: |
|
Analyst Contact: |
|
Gail Osten |
Gary Compton |
Debbie Koopman |
|
(312) 786-7123 |
(312) 786-7612 |
(312) 786-7136 |
|
osten@cboe.com |
comptong@cboe.com |
koopman@cboe.com |
CBOE®, Chicago Board Options Exchange®, CBOEdirect®, CBOE Volatility Index®, VIX®, XEO®, OEX®, CBSX® and CBOE Stock Exchange® are registered trademarks of Chicago Board Options Exchange, Incorporated. SPXSM, XSPSM, MNXSM, GVZSM, EVZSM, OVXSM, BXOSM, RUHSM, VXDSM, VXNSM, RVXSM, VPDSM, VPNSM, VTYSM, VXOSM, and VXVSM are service marks of Chicago Board Options Exchange, Incorporated. CFE® is a registered trademark and CBOE Futures ExchangeSM is a service mark of CBOE Futures Exchange, LLC. Dow Jones®, DJIA®, and DIAMONDS® are registered trademarks of Dow Jones & Company, Inc. Dow Jones Industrial AverageSM and Options on the DowSM are service marks of Dow Jones & Company. CBOE’s Options on the Dow based on the Dow Jones Industrial Average and financial products based on the CBOE DJIA Volatility Index are not sponsored, endorsed, marketed or promoted by Dow Jones. S&P®, S&P 100®, S&P 500®, and SPDR are registered trademarks of the McGraw-Hill Companies, Inc. and are licensed for use by the Chicago Board Options Exchange, Incorporated pursuant to a License Agreement. The Russell 2000® Index is a registered trademark of The Frank Russell Company used under license. Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and PowerShares QQQ TrustSM are trademarks of The Nasdaq Stock Market, Inc. iShares is a service mark of Barclays Global Investors, N.A. “HOLDRS” and “Holding Company Depositary ReceiptS” are service marks of Merrill Lynch & Co., Inc.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
In connection with the proposed restructuring transaction, CBOE Holdings, Inc. (“CBOE Holdings”) has filed certain relevant materials with the United States Securities and Exchange Commission (SEC), including a registration statement on Form S-4. Members are encouraged to read the registration statement, including the proxy statement/prospectus that are a part of the registration statement, because it contains important information about the proposed transaction. Members are able to obtain a free copy of the proxy statement/prospectus, as well as the other filings containing information about CBOE Holdings and the Chicago Board Options Exchange, Incorporated (“CBOE”), without charge, at the SEC’s Web site, http://www.sec.gov/, and the companies’ website, http://www.cboe.com/.In addition, CBOE members may obtain free copies of the proxy statement/prospectus and other documents filed by CBOE Holdings or the CBOE from CBOE Holdings by directing a request to the Office of the Secretary, CBOE Holdings, Inc., 400 South LaSalle Street, Chicago, Illinois 60605.
CBOE Holdings, the CBOE and their respective directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of CBOE Holdings and of the CBOE is available in the prospectus/proxy statement.
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