Hedge Funds' Secret Weapon Goes Mainstream With CBOE's DSPX Debut
Portfolio Pulse from Piero Cingari
CBOE Global Markets Inc. has launched the CBOE S&P 500 Dispersion Index (DSPX), designed to capture price differences between options on the S&P 500 and its underlying constituents. The company is also planning to introduce futures products tied to DSPX by the second quarter of next year. Dispersion trading, the strategy that DSPX is based on, has gained popularity due to its resilience in the face of market turbulence.
September 27, 2023 | 7:31 pm
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POSITIVE IMPACT
CBOE's launch of the DSPX and plans to introduce futures products tied to it could potentially increase the company's revenue and attract more investors due to the growing popularity of dispersion trading.
The launch of the DSPX and the planned introduction of futures products tied to it represent new revenue streams for CBOE. Given the growing popularity of dispersion trading, these products could attract a significant number of investors, potentially leading to an increase in CBOE's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100