Core Viewpoint - Cboe Europe Derivatives (CEDX) plans to launch Cboe Flexible Exchange (FLEX) options in Europe in Q1 2026, aiming to provide tailored risk management tools for institutional investors [1][7]. Group 1: Product Features - FLEX options allow customization of key contract terms such as strike price, expiration date, settlement type, and exercise style for options on stock indices, individual equities, and ETFs within a regulated exchange environment [2]. - These products combine the flexibility of over-the-counter derivatives with the transparency and efficiency of exchange-traded products [2]. Group 2: Market Context and Growth - Cboe has a strong track record in options innovation, having introduced FLEX options to the U.S. market in 1993, with total open interest increasing from 2 million in 2019 to 35 million in 2025 [3]. - The assets under management in U.S. defined-outcome ETFs have surged from $5 billion in 2019 to over $70 billion in 2025, indicating a growing demand for customized investment strategies [3]. Group 3: Launch Plans and Partnerships - At launch, CEDX will offer FLEX options on select underlyings, including single country and pan-European equity indices, individual equities, and ETFs, with plans for expansion throughout 2026 [4]. - The launch is supported by First Trust Global Portfolios and Vest Financial, both of which are new to the European market [5]. Group 4: Industry Impact - The introduction of FLEX options is expected to enhance the range of exchange-traded tools available to European investors, enabling better risk management and tailored investment strategies [5][6]. - Cboe's expertise in options and robust infrastructure positions it well to support issuers and market participants in expanding these offerings across Europe [5].