Cboe to Launch Mini-Russell 2000 Index Options on March 1

Cboe Options Exchange​ (Cboe) today confirmed that it has scheduled the launch of Mini-Russell 2000 Index Options for Monday, March 1, 2021.

Cboe's New Mini-Russell 2000 Index options (ticker symbol: MRUT) are designed to provide direct exposure to the Russell 2000 Index in a more manageably sized and cost-effective contract. The mini options will share the same contract terms as standard Russell 2000 Index options (ticker symbol: RUT) but will be one-tenth the size of the standard contract, making them comparable to ETF options that similarly provide U.S. small-cap equity exposure.

With a smaller notional value, Mini-Russell 2000 Index options help to offer investors potentially greater flexibility and precision when managing U.S. small-cap equity market risk or allocating among accounts.

The creation of the mini contract follows Cboe​'s success with standard Russell 2000 options – one of the five most liquid cash-settled equity index options listed in the U.S. – and will provide investors with additional tools to execute their U.S. small-cap equity trading strategies.

With the launch of Mini-Russell 2000 Index options, Cboe​ also continues to expand its offerings of tradable index products that feature a mini contract, including Mini Cboe Volatility Index futures (ticker symbol: VXM) and Mini S&P 500 Index options (ticker symbol: XSP), designed to appeal to a wide range of investors, including sophisticated retail traders seeking to hedge or gain exposure to the broad U.S. equity markets.

Cboe​ expects the utility of Mini-Russell 2000 Index options to help meet the investment needs of a wide base of market participants, ranging from new index options traders and sophisticated retail traders managing an individual portfolio, to small- and mid-sized institutional investors seeking to execute small-cap options-based strategies. Similar to standard Russell options, Mini-Russell 2000 Index options will be structured as European-style options (no early exercise) and cash-settled (no unwanted delivery or assignment of shares) at expiration with P.M. settlement.

The Russell 2000 Index is the world's premier benchmark measuring the performance of the small-cap segment of the U.S. stock market. Standard monthly options tracking the Russell 2000 Index were first offered at Cboe​ in 1992. In 2020, average daily volumes for Russell 2000 Index options traded at Cboe were approximately 34,000 contracts with total open interest standing at over 600,000 contracts.

​As Fazzaco has reported, following a record-breaking 2020​ and the successful completion of the acquisition of BIDS Trading​, Cboe continues to cement its leading market position with market quality enhancement efforts at the beginning of 2021. Last week, it announced the plan to introduce a new incentive program​ that aims to help further enhance market quality for primarily listed exchange-traded products (ETPs) on Cboe BZX Exchange, beginning today. Prior to that, the US derivatives exchange also introduced a new Floor Broker ADV report​ that has taken effect from January 13, 2021.