Cboe Announces Planned Launch of Options on VIX Futures, Further Expanding Volatility Product Suite
Cboe Global Markets (CBOE) has announced plans to launch options on Cboe Volatility Index (VIX) futures, expected to begin trading on October 14, 2024, subject to regulatory review. These new options will be CFTC-regulated and based on front-month VIX futures, allowing a wider range of market participants to manage or gain exposure to U.S. equity market volatility. The move aims to expand Cboe's VIX complex and address global demand for hedging tools, especially with the upcoming U.S. election, which has historically been a significant volatility catalyst.
The new options will be European-style and physically settle into front-month VIX futures. They are designed to complement existing VIX Index options, providing more choice in expiration dates and enabling more granular hedging strategies. Cboe expects these options to appeal to a broad group of users, including Commodity Trading Advisors and customers of Futures Commission Merchants.
Cboe Global Markets (CBOE) ha annunciato piani per lanciare opzioni sui futures del Cboe Volatility Index (VIX), che dovrebbero iniziare a essere scambiate il 14 ottobre 2024, soggette a revisione normativa. Queste nuove opzioni saranno regolate dalla CFTC e basate sui futures VIX del mese corrente, permettendo a un'ampia gamma di partecipanti al mercato di gestire o acquisire esposizione alla volatilità del mercato azionario statunitense. Questa iniziativa mira a espandere il complesso VIX di Cboe e rispondere alla domanda globale di strumenti di copertura, soprattutto in vista delle prossime elezioni statunitensi, che storicamente hanno rappresentato un importante fattore di volatilità.
Le nuove opzioni saranno di tipo europeo e si regoleranno fisicamente in futures VIX del mese corrente. Sono progettate per completare le già esistenti opzioni sull'indice VIX, offrendo maggiore scelta nelle date di scadenza e abilitando strategie di copertura più dettagliate. Cboe si aspetta che queste opzioni attraggano un ampio gruppo di utenti, tra cui consulenti di trading di merci e clienti di broker di commissioni sui futures.
Cboe Global Markets (CBOE) ha anunciado planes para lanzar opciones sobre futuros del Cboe Volatility Index (VIX), que se espera comiencen a negociarse el 14 de octubre de 2024, sujeto a revisión regulatoria. Estas nuevas opciones estarán reguladas por la CFTC y basadas en futuros VIX del mes en curso, permitiendo a una gama más amplia de participantes del mercado gestionar o adquirir exposición a la volatilidad del mercado de acciones de EE. UU. Este movimiento tiene como objetivo expandir el complejo VIX de Cboe y atender la demanda global de herramientas de cobertura, especialmente con las próximas elecciones en EE. UU., que históricamente han sido un importante catalizador de volatilidad.
Las nuevas opciones serán de estilo europeo y se liquidarán físicamente en futuros VIX del mes actual. Están diseñadas para complementar las opciones existentes del índice VIX, proporcionando más opciones en las fechas de vencimiento y habilitando estrategias de cobertura más detalladas. Cboe espera que estas opciones atraigan a un amplio grupo de usuarios, incluidos asesores de comercio de productos básicos y clientes de corredores de comisiones de futuros.
Cboe 글로벌 마켓(CBOE)은 Cboe 변동성 지수(VIX) 선물 옵션 출시 계획을 발표하였으며, 2024년 10월 14일부터 거래가 시작될 예정이며, 규제 검토를 받게 됩니다. 이러한 새로운 옵션은 CFTC 규제를 받으며, 현재 달의 VIX 선물에 기반하여, 더 넓은 범위의 시장 참여자들이 미국 주식 시장의 변동성을 관리하거나 노출될 수 있도록 합니다. 이 움직임은 Cboe의 VIX 복합체를 확장하기 위한 것이며, 특히 역사적으로 큰 변동성 촉매제로 작용해온 미국 대선이 다가오면서 헤징 도구에 대한 세계적인 수요를 충족하기 위한 것입니다.
새로운 옵션은 유럽식으로 설계되어 현재 달의 VIX 선물로 물리적으로 정산됩니다. 이는 기존 VIX 지수 옵션을 보완하기 위해 설계되었으며, 만기 날짜에 대한 더 많은 선택지를 제공하고, 더 정교한 헤징 전략을 가능하게 합니다. Cboe는 이 옵션들이 상품 거래 자문가와 선물 위탁 회사의 고객을 포함한 광범위한 사용자에게 매력적일 것으로 예상하고 있습니다.
Cboe Global Markets (CBOE) a annoncé des projets pour lancer des options sur les contrats à terme de l'indice de volatilité de Cboe (VIX), qui devraient commencer à être négociées le 14 octobre 2024, sous réserve d'un examen réglementaire. Ces nouvelles options seront régulées par la CFTC et basées sur les contrats à terme VIX du mois en cours, permettant à un plus large éventail de participants au marché de gérer ou d'acquérir une exposition à la volatilité du marché boursier américain. Ce mouvement vise à élargir le complexe VIX de Cboe et à répondre à la demande mondiale d'outils de couverture, notamment avec les élections américaines à venir, qui ont historiquement été un catalyseur de volatilité important.
Les nouvelles options seront de style européen et se régleront physiquement en contrats à terme VIX du mois en cours. Elles sont conçues pour compléter les options existantes de l'indice VIX, offrant plus de choix en termes de dates d'expiration et permettant des stratégies de couverture plus détaillées. Cboe s'attend à ce que ces options séduisent un large groupe d'utilisateurs, y compris les conseillers en trading de matières premières et les clients des courtiers en contrats à terme.
Cboe Global Markets (CBOE) hat Pläne angekündigt, Optionen auf Cboe Volatility Index (VIX) Futures einzuführen, die voraussichtlich am 14. Oktober 2024 mit dem Handel beginnen werden, vorbehaltlich einer regulatorischen Prüfung. Diese neuen Optionen werden von der CFTC reguliert und basieren auf den VIX Futures des aktuellen Monats, was es einer breiteren Palette von Marktteilnehmern ermöglicht, die Volatilität des US-Aktienmarktes zu verwalten oder darauf zuzugreifen. Diese Maßnahme zielt darauf ab, Cboes VIX-Komplex zu erweitern und der globalen Nachfrage nach Hedging-Tools gerecht zu werden, insbesondere angesichts der bevorstehenden US-Wahlen, die historisch gesehen ein bedeutender Volatilitätsfaktor waren.
Die neuen Optionen werden europäisch sein und physisch in die VIX Futures des aktuellen Monats settle. Sie sind darauf ausgelegt, die bestehenden VIX Index Optionen zu ergänzen, indem sie mehr Wahlmöglichkeiten bei den Verfallsterminen bieten und detailliertere Hedging-Strategien ermöglichen. Cboe erwartet, dass diese Optionen eine breite Nutzergruppe ansprechen, einschließlich Commodity Trading Advisors und Kunden von Futures Commission Merchants.
- Expansion of VIX product suite to meet global demand for hedging tools
- New options allow wider range of market participants to access volatility trading
- Potential increase in trading activity due to upcoming U.S. election
- Complementary product to existing VIX Index options, offering more granular hedging strategies
- None.
Insights
Cboe's planned launch of options on VIX futures is a strategic expansion of their volatility product suite. This move aims to broaden market access and provide new hedging tools, particularly for participants restricted from U.S. securities-based options. The
The timing is crucial, with the U.S. election approaching - historically a volatility catalyst. This product launch could see increased trading volumes and potentially boost Cboe's revenue. However, the success will depend on market adoption and liquidity provision.
Investors should watch for initial trading volumes and open interest post-launch to gauge market reception. Long-term, this could strengthen Cboe's position in the volatility products market, potentially impacting shareholder value positively.
The introduction of options on VIX futures represents a significant enhancement to the risk management toolkit for institutional investors and traders. This product offers more granular hedging strategies and expiration date choices, complementing existing VIX Index options.
The European-style exercise and physical settlement into front-month VIX futures provide a clear risk profile for users. This structure allows for more precise volatility exposure management, potentially reducing basis risk in complex portfolios.
However, users must be aware of the potential complexity in pricing and trading these instruments. The interplay between options, futures and the underlying VIX index could create opportunities but also risks for less experienced traders. Overall, this product enhances the sophistication of volatility trading strategies available in the market.
- New options planned to be listed on front-month Cboe Volatility Index (VIX) futures
- Options-on-future structure designed to offer new way to manage market volatility
- Expansion of VIX complex aims to address global demand for hedging tools
Cboe currently offers securities-based VIX Index options, which allow investors to manage or gain exposure to broad
"As the pioneer in volatility trading, Cboe continues to expand its VIX complex with additional products and services targeted at helping market participants better manage portfolio risk and trade volatility," said Rob Hocking, Head of Product Innovation at Cboe. "Given the increased trading activity we're seeing in VIX options and the strong demand for hedging tools this year, we're especially excited to expand our volatility toolkit to include these new options on VIX futures and our planned relaunch of variance futures coming in late September. With the
"We expect options on VIX futures will complement our existing product suite, appealing to a broad group of users, including Commodity Trading Advisors, customers of Futures Commission Merchants, and market participants currently active in VIX exchange-traded products and in Cboe's SPX option and VIX product ecosystems," said Catherine Clay, Head of Global Derivatives at Cboe. "By listing these options on Cboe's
Options on VIX futures will be European-style (can only be exercised at expiration) and will physically settle into front-month VIX futures. The new options are expected to complement the existing VIX Index options, providing customers with more choice in expiration dates and enabling more granular hedging strategies. Users of options on VIX futures may be able to hedge those positions using front-month VIX futures and standard VIX Index options.
The new options on VIX futures will be exclusively listed and traded on CFE, joining other prominent volatility products, such as Cboe Volatility Index (VIX) futures and the planned launches of Cboe S&P 500 Variance (VA) futures and Cboe S&P 500 Dispersion Index (DSPX) futures, subject to regulatory review. For more information about Cboe's new options on VIX futures, visit Cboe's website.
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Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX across
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FAQ
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