CBOE prepares to launch credit default options

The Chicago Board Options Exchange (CBOE) is preparing to trade credit default options that will pay out following a credit event.

The products will pay a fixed $100,000 payment after a failure to pay by the underlying entity. The exchange plans to list five to 10 options, but has not named the underlying companies. The products are now awaiting regulatory approval from the Securities and Exchange Commission.

This follows the exchange’s legal challenge to its rival Chicago Mercantile Exchange’s efforts to trade credit event futures (See: Delays and revisions for CME's credit event futures).

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here