Flex fly high

WHEN Matt Kaufman needs to include options in Calamos Investments’ defined-outcome exchange-traded funds (ETFs), he turns to a type of bespoke equity derivative that lets him – rather than an exchange – set the terms of the contract.

These flexible exchange options – also known as “Flex” – have existed since Cboe Global Markets Inc introduced them in 1993 but only gained traction in recent years.