On April 18, 2016 William O’Keefe, XFA Director of Derivative and Customized Options, executed the first order on the newly listed Flex Option with Asian style settlement on the CBOE. CBOE listed the FLEX index option with Asian and Cliquet Settlement on March 21, which were previously only traded in the over-the-counter (OTC) market.
The Asian and Cliquet style options are considered exotic options and traditionally trade within the insurance and annuity space. This type of exotic option previously traded over the counter with the end user dealing with the bank as a bilateral trade. Now with this product trading on the CBOE, the customer has the opportunity to face the OCC, which reduces credit risk and provides transparency to the trade as well as receive other traditional exchange-traded benefits such as price discovery, transparency and centralized clearing.
XFA has a team in place that specializes in exotic and customized options and derivatives with capabilities to execute these newly listed exotic options.
For more information on this product, contact Bill O’Keefe at 312-583-0787.