Nasdaq OMX PHLX Launches Options Trading on China Index

Susquehanna Securities is the specialist for the index, which is comprised of 30 Chinese companies listed on U.S. exchanges.

Nasdaq OMX Group launched options trading on the Nasdaq China Index today. The index (Nasdaq:CHXN) is designed to track the performance of the largest Chinese companies whose securities are listed and actively traded in the U.S. Susquehanna Securities is the specialist for the new product, which began trading on the Nasdaq OMX PHLX.

“Susquehanna is a world leading market maker and acts as a critical provider of liquidity in several PHLX index options,” stated Thomas Wittman, president of Nasdaq OMX PHLX, Inc. in the release. Wittman added, “With Susquehanna’s participation, the investing public will have a highly liquid, efficient vehicle with which to trade one of the most dynamic geographic sectors of the capital markets.”

The index is comprised of 30 Chinese companies that are listed on Nasdaq, the New York Stock Exchange, or the NYSE Amex and is calculated using a modified market capitalization methodology.

“Investors now have the ability to trade options on an index that tracks the performance of some of China’s most innovative companies,” commented John Jacobs, EVP, Nasdaq OMX Global Index Group in the release. “This gives investors additional flexibility to tailor their trading strategies to their individual needs,” Jacobs further stated.

The product exposes these companies to wider visibility and access from the U.S. to a large pool of investors worldwide. According to Nasdaq OMX, the index underscores the exchange operators to commitment to designing and calculating relevant world-class indexes.

The Nasdaq China Index is calculated in real time across the combined exchanges and is disseminated in dollars. The index began calculation with a value of 150.00 on May 3, 2007.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio