Cboe Unveils 3 New US Equity Indices: Potential Impact on Bitcoin (BTC) and Crypto Market


Cboe to Launch Three New US Equity Indices to Measure Dispersion

Chicago Board Options Exchange (Cboe) has announced its plans to launch three new US equity indices in collaboration with Metaurus Advisors. The indices are designed to provide real-time insight into return dispersion, a crucial aspect of market return.

Cboe and Metaurus are set to introduce the Cboe US Large Cap 100 Index, the Cboe US Large Cap Lead 50 Index, and the Cboe US Large Cap Lag 50 Index, further expanding Cboe’s growing global index business.

Details on the New Indices

The Cboe US Large Cap 100 Index will be an equal-dollar-weighted index consisting of 100 of the largest US stocks by market capitalization, replicating the sector capitalization weightings of the largest companies listed on US exchanges. The index will be rebalanced quarterly.

The Cboe Lead 50 and Cboe Lag 50, both equal-dollar-weighted indices, are designed to measure the total returns of the top 50 and bottom 50 performing companies, respectively, within the Cboe US Large Cap 100 Index on a quarterly basis. These indices are expected to provide a gauge for realized dispersion, a key component to portfolio returns.

Dispersion: A Critical Aspect of Market Return

Rob Hocking, Senior Vice President and Head of Product Innovation at Cboe, emphasized the importance of dispersion in market return. He stated, “These indices will utilize Cboe’s world-class index innovation capabilities, combined with the simple, yet powerful, patent-pending technology developed by Metaurus, to help traders further understand how individual stocks contribute to the overall performance of the broader market.”

Richard Sandulli, Co-CEO of Metaurus, also commented on the collaboration, highlighting their collective expertise in bringing novel investment products to the broader market.

Conclusion

The launch of these new indices by Cboe and Metaurus is a significant development in the financial market. By providing real-time insight into return dispersion, these indices will offer valuable tools for traders and investors to better understand market dynamics and make informed decisions. The indices are expected to launch by the end of 2024.

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