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Alibaba options expected
to be listed on September 29: exchanges
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[September 17, 2014]
By Saqib Iqbal Ahmed
NEW YORK (Reuters) -
Investors looking to hedge their bets or speculate on
the direction of Alibaba Group's stock after its
expected public sale of shares on Friday, will be able
to trade its options in two weeks, as U.S. options
exchanges are expected to list contracts on the company. |
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 The Chinese e-commerce company's options will be listed on CBOE
Holdings Inc <CBOE.O> and International Securities Exchange
Holdings' options exchanges on Sept. 29, pending the company's
public sale of shares this week, the exchanges said on Tuesday.
International Securities Exchange Holdings operates two options
exchanges, ISE and ISE Gemini, which through August handled about 14
percent of equity and index options contracts in 2014, according to
OCC, formerly the Options Clearing Corporation.
CBOE said on Tuesday that it will be listing Alibaba options on the
Chicago Board Options Exchange and the C2 Options Exchange once new
options listing criteria are met.
The two exchanges together so far account for nearly 29 percent of
trading in U.S. stock and exchange options in 2014, per OCC data.
On Monday, Alibaba Group Holding Ltd raised the price range on its
initial public offering to $66 to $68, reflecting strong demand from
investors for the year's most anticipated debut and potentially the
world's largest-ever IPO.
Contract specifications for Alibaba options will be determined when
the new listing is certified by OCC prior to trading, ISE said in a
statement.
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Typically, the other U.S. options exchanges would also offer these
options at the same time as long as certain thresholds are met.
A spokesperson for BATS Options exchange, a division of BATS Global
Markets, could not be immediately reached for a response on when
they plan to list Alibaba options.
(Reporting By Saqib iqbal Ahmed; Editing by Bernard Orr)
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