8-KMaterial AgreementsExhibits & Filings

Cboe Global Markets, Inc. 8-K Report, Material Agreement (Dec 22, 2017)

Filed December 22, 2017For Securities:CBOE

Summary

Cboe Global Markets, Inc. (CBOE) announced a significant amendment to its existing license agreements with S&P Dow Jones Indices, LLC and DJI Opco, LLC, as detailed in their Form 8-K filed on December 22, 2017. This amendment primarily extends the license for trading options on key S&P and Dow Jones indexes through December 31, 2033, providing substantial long-term visibility for CBOE's derivatives business. Key terms include the expansion of trading rights to include options on S&P Select Sector Indexes and the establishment of pricing for reduced size options on certain Dow Jones indexes. These changes are strategically important for CBOE, potentially broadening its product offering and revenue streams in the highly competitive options market. The extension of these critical licenses offers investors confidence in CBOE's continued access to and ability to profit from trading in these widely followed benchmark indexes.

Key Highlights

  • 1Extended license agreements for trading options on S&P 500, S&P 100, and other S&P indexes until December 31, 2033.
  • 2Extended license agreements for trading options on Dow Jones Industrial Average and other DJ indexes until December 31, 2033.
  • 3Added the ability to list and trade options on S&P Select Sector Indexes.
  • 4Established pricing for reduced size options on certain Dow Jones indexes.
  • 5Implemented a fee credit mechanism between the 1994 and 2006 agreements.
  • 6Amendments include modifications due to changes in foreign laws.
  • 7Portions of the amendment are subject to confidential treatment.

Frequently Asked Questions

The primary impact is the extension of Cboe's exclusive rights to list and trade options on highly popular indexes like the S&P 500 and Dow Jones Industrial Average until December 31, 2033. This provides long-term revenue stability and predictability for Cboe's derivatives segment.

Yes, the amendment allows Cboe to list and trade options on S&P Select Sector Indexes, expanding their product suite and potentially attracting new market participants.

The amendment establishes pricing for reduced size options on certain Dow Jones indexes and allows for certain fees to be credited toward minimum annual fees. While specific financial figures are not detailed in the 8-K, these terms suggest adjustments aimed at optimizing fee structures and potentially enhancing profitability.

Confidential treatment is often requested for specific financial terms, fee structures, or other commercially sensitive details within agreements to maintain a competitive advantage and prevent disclosure of proprietary information to rivals.