Cboe World Markets has introduced new choices on Cboe Volatility Index (VIX) futures which might be anticipated to start buying and selling on Cboe Futures Change (CFE) on 14 October.
Catherine Clay, international head of derivatives at Cboe
The brand new choices on VIX futures will be offering buyers an extra instrument to assist set up US fairness marketplace volatility. They supplement Cboe’s present securities-based VIX index choices, which might be designed to offer an identical chance control and yield enhancement features.
The brand new product makes use of an option-on-future construction, which might doubtlessly permit extra marketplace contributors, together with the ones limited from having access to securities-based choices, to business a VIX choices product.
Cboe’s VIX Index choices have observed file buying and selling volumes over the last two years, with reasonable day-to-day volumes attaining over 851,000 contracts in 2024, up more or less 60% when in comparison to 2022.
“Traders have lengthy utilised VIX choices and VIX futures to assist hedge and set up volatility publicity, and Cboe is proud to increase our volatility product suite at the sort of crucial time,” stated Catherine Clay, international head of derivatives at Cboe.
“The release will supplement our present volatility choices, together with the just lately introduced Cboe S&P 500 Variance futures, and allow extra buyers having the ability to assist set up volatility and chance in the course of the election season and past.”
Learn extra: Cboe set to release new Cboe S&P 500 Variance Futures
Cboe World Markets added that choices on VIX futures may have a Eu-style workout, PM agreement and bodily settle into front-month VIX destiny.
The contracts will probably be regulated by means of the Commodity Futures Buying and selling Fee (CFTC) and cleared by means of The Choices Clearing Company (OCC).
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