Catherine Clay is Global Head of Derivatives at Cboe Global Markets.
What was the highlight of 2024?
Amid geopolitical tensions and macro uncertainty including the Fed’s shifting monetary policy, we saw investors globally increasingly turning to options for the risk management and income generating capabilities they offer. In fact, the industry is on pace for its fifth record year in a row. Part of this growth was due to the increased demand for single-stock and index options. Within Cboe’s proprietary index options, S&P 500 Index (SPX) and Cboe Volatility Index (VIX) options are on track to surpass last year’s record volume. Institutional and retail investors from across the globe have found value in the broad exposure, precise hedging ability and cash-settled nature these products provide.
This was my first year leading the Global Derivatives business and a large part of our success followed a strategic reorganization that unified Cboe’s derivatives businesses, educational institute and innovation hub under one umbrella. This allowed us to lay out a strong foundation for the future with one unified, global team working towards a common objective. Going forward, we can continue to leverage our global expertise, new and existing partnerships, and customer relationships to provide access to options, and advocate for the benefits these products can provide.
What were the key theme(s) for your business in 2024?
Expanding access to options for investors across the globe was a key theme for our business this year. Expanding accessibility comes in a multitude of ways but ultimately the objective is to equip traders with the tools and education they need to be successful. We expanded access through making options trading available on new platforms, enhancing educational resources, or launching new products. In October, we announced plans to partner with Robinhood as they launched index options on their platform, further expanding retail access. The launch of index options on Robinhood was a long time in the making and comes with important guardrails and education to ensure new options traders on the platform are well prepared.
This year we expanded our volatility toolkit, with the launch of Options on VIX Futures and Variance Futures, and the addition of cash-settled index options in the crypto space following the launch of options on the newly created Cboe Bitcoin U.S. ETF Index (CBTX). The CBTX Index options launch is a great example of Cboe’s ecosystem at work. Cboe is the listing exchange for many U.S. spot bitcoin ETFs. Cboe Global Indices developed a new index from these ETFs, we then listed options on the index and are now working with issuers through our Listings business to extend access to these strategies through ETPs. No matter the product or underlying asset, we strive to listen to our customers and work to provide exchange-traded solutions.
What surprised you in 2024?
The appetite for the U.S. markets from foreign investors, especially investors in the Asia Pacific region, was particularly surprising. This is an area that we are increasingly focused on considering the level of sophistication and derivatives knowledge many retail investors already have. By collaborating with local retail brokers, we are looking to provide resources and access to our index options to a new set of customers. Each country in APAC brings its own unique challenges and opportunities with a different regulatory landscape and trading culture. Despite these differences, the common theme of strong demand for U.S. exposure connects them all. Many market structure obstacles — like barriers to market data and tradable products— remain, and we continue to work with our Data Vantage business to ensure investors have the data and tools needed to test trading strategies, understand opportunities and begin trading.
What are your expectations for 2025? Any trends to keep an eye out for?
Going forward, Cboe Global Derivatives will build off the momentum we created this year and strive to shape how global investors manage risk and opportunity. The demand for options has expanded beyond the utility they first provided when Cboe introduced listed options over 50 years ago. We’ve seen a shift in trading as investors implement more short-dated trading strategies, options-based ETFs and options on new asset classes into their portfolios. We will continue to facilitate growth and access to U.S. options market by listening to and educating our customers, working with industry partners and leveraging Cboe’s entire ecosystem. Options can play an important role in portfolios, and Cboe is well-positioned to drive this market forward on a global scale.
