Cboe to Launch Options on VIX Futures on Monday, October 14
Cboe Global Markets (CBOE) announced the launch of Options on Cboe Volatility Index (VIX) Futures (Ticker: UX) on October 14. These CFTC-regulated options will physically settle into front-month VIX Futures, offering investors a new tool to manage U.S. equity market volatility. The product complements Cboe's existing securities-based VIX Index options and may allow more market participants to trade VIX options products.
Key features include:
- European-style exercise
- P.M. settlement
- Physical settlement into front-month VIX futures
- Initial listing of contract expirations for every day the week of October 21 with two additional Friday expirations
This launch follows Cboe's recent introduction of S&P 500 Variance (VA) futures, expanding their volatility product suite ahead of the U.S. election.
Cboe Global Markets (CBOE) ha annunciato il lancio delle Opzioni sui futures del Cboe Volatility Index (VIX) (Ticker: UX) il 14 ottobre. Queste opzioni regolamentate dalla CFTC si sistemeranno fisicamente nei futures VIX del mese corrente, offrendo agli investitori un nuovo strumento per gestire la volatilità del mercato azionario statunitense. Questo prodotto si aggiunge alle opzioni esistenti basate sui titoli VIX e potrebbe consentire a un numero maggiore di partecipanti di mercato di negoziare prodotti di opzioni VIX.
Le caratteristiche principali includono:
- Esercizio in stile europeo
- Regolamento a pomeriggio
- Regolamento fisico nei futures VIX del mese corrente
- Lista iniziale delle scadenze contrattuali per ogni giorno della settimana del 21 ottobre, con due ulteriori scadenze il venerdì
Questo lancio segue l'introduzione recente da parte di Cboe dei futures sulla varietà S&P 500 (VA), ampliando la loro offerta di prodotti sulla volatilità in vista delle elezioni statunitensi.
Cboe Global Markets (CBOE) anunció el lanzamiento de Opciones sobre futuros del Cboe Volatility Index (VIX) (Ticker: UX) el 14 de octubre. Estas opciones reguladas por la CFTC se liquidarán físicamente en los futuros VIX del mes en curso, ofreciendo a los inversores una nueva herramienta para gestionar la volatilidad del mercado de acciones de EE. UU. El producto complementa las opciones existentes basadas en el índice VIX y puede permitir que más participantes del mercado negocien productos de opciones VIX.
Las características clave incluyen:
- Ejercicio estilo europeo
- Liquidación al final del día
- Liquidación física en los futuros VIX del mes en curso
- Listado inicial de vencimientos de contratos para cada día de la semana del 21 de octubre, con dos vencimientos adicionales el viernes
Este lanzamiento sigue a la reciente introducción de futuros de Varianza S&P 500 (VA) por parte de Cboe, ampliando su gama de productos de volatilidad antes de las elecciones en EE. UU.
Cboe Global Markets (CBOE)는 Cboe 변동성 지수(VIX) 선물 옵션 (티커: UX)을 10월 14일에 출시한다고 발표했습니다. 이 CFTC 규제 옵션은 현재 월 VIX 선물에 물리적으로 정산되어 미국 주식 시장의 변동성을 관리하기 위한 새로운 도구를 투자자에게 제공합니다. 이 제품은 기존의 증권 기반 VIX 지수 옵션을 보완하며, 더 많은 시장 참여자가 VIX 옵션 제품을 거래할 수 있게 해줄 수 있습니다.
주요 특징은 다음과 같습니다:
- 유럽 스타일의 행사
- 오후 정산
- 현재 월 VIX 선물로의 물리적 정산
- 10월 21일 주 동안 매일 계약 만기 목록과 두 개의 추가 금요일 만기
이번 출시는 Cboe가 최근 출시한 S&P 500 변동성(VA) 선물에 이어 진행되며, 미국 선거를 앞두고 변동성 제품군을 확장하고 있습니다.
Cboe Global Markets (CBOE) a annoncé le lancement des Options sur les contrats à terme Cboe Volatility Index (VIX) (Ticker : UX) le 14 octobre. Ces options régulées par la CFTC se régleront physiquement en contrats à terme VIX du mois courant, offrant aux investisseurs un nouvel outil pour gérer la volatilité du marché boursier américain. Ce produit complète les options existantes sur l'indice VIX basées sur des titres et peut permettre à un plus grand nombre de participants au marché de négocier des produits d'options VIX.
Les caractéristiques clés comprennent :
- Exercice de style européen
- Règlement à l'après-midi
- Règlement physique en contrats à terme VIX du mois courant
- Liste initiale des échéances de contrats pour chaque jour de la semaine du 21 octobre avec deux échéances supplémentaires le vendredi
Ce lancement fait suite à l'introduction récente par Cboe des contrats à terme sur la variance S&P 500 (VA), élargissant leur gamme de produits de volatilité avant les élections américaines.
Cboe Global Markets (CBOE) hat die Einführung von Optionen auf die Cboe Volatility Index (VIX) Futures (Ticker: UX) am 14. Oktober bekannt gegeben. Diese von der CFTC regulierten Optionen werden physisch in die VIX-Futures des laufenden Monats settleln und bieten Investoren ein neues Instrument zur Verwaltung der Volatilität des US-Aktienmarktes. Das Produkt ergänzt die bestehenden auf Wertpapieren basierenden VIX-Indexoptionen und könnte es mehr Marktteilnehmern ermöglichen, VIX-Optionsprodukte zu handeln.
Die wichtigsten Merkmale sind:
- Europäischer Stil der Ausübung
- Nachmittagsabwicklung
- Physische Abwicklung in die VIX-Futures des laufenden Monats
- Erster Listung von Vertragsabläufen für jeden Tag der Woche vom 21. Oktober sowie zwei zusätzliche Freitagsabläufe
Diese Einführung folgt auf die kürzliche Einführung der S&P 500 Varianz (VA) Futures von Cboe, die ihr Produktangebot zur Volatilität vor den US-Wahlen erweitern.
- Launch of new Options on VIX Futures product, expanding Cboe's volatility offerings
- Potential to attract new market participants due to options-on-futures structure
- Record trading volumes in VIX Index options, with average daily volumes reaching over 851,000 contracts in 2024, up 60% from 2022
- Complementary to recently launched Cboe S&P 500 Variance (VA) futures
- None.
Insights
The launch of Options on VIX Futures by Cboe represents a significant expansion of their volatility product suite. This new offering addresses several key market needs:
- Provides a CFTC-regulated alternative to securities-based VIX options
- Enables more granular management of short-term volatility
- Potentially opens access to investors restricted from securities-based options
The timing is strategic, coinciding with increased market uncertainty due to the upcoming U.S. election and recent changes in Fed policy. The record trading volumes in VIX Index options, with a
For investors, this product offers enhanced flexibility in volatility trading strategies and risk management. The European-style exercise and physical settlement into front-month VIX futures provide a direct link to the underlying volatility market. However, as with any new derivative product, liquidity and market adoption will be important factors to monitor in the early stages of trading.
Cboe's introduction of Options on VIX Futures is a strategic move that could significantly impact the volatility trading landscape. Key points to consider:
- Expands Cboe's dominance in the volatility products space
- Potentially increases trading volumes and revenue for Cboe (CBOE)
- Attracts new market participants, possibly boosting overall market liquidity
The product launch aligns with growing investor demand for sophisticated risk management tools, especially in the current uncertain economic environment. The endorsements from major market players like IMC US, Prime Trading and Melqart KEAL Macro Fund suggest strong industry support and potential for rapid adoption.
For Cboe shareholders, this could translate to increased revenue streams and market share. However, the success will depend on actual trading volumes and how well the product integrates with existing volatility trading strategies. Investors should monitor the uptake and liquidity of these new options in the coming months to gauge their impact on Cboe's financial performance.
- New CFTC-regulated options on futures will physically settle into front-month Cboe Volatility Index (VIX) Futures
- Designed to offer market participants the ability to more granularly manage volatility
- Further expansion of Cboe's volatility complex following launch of Cboe S&P 500 Variance (VA) futures
The new Options on VIX Futures will provide investors an additional tool to help manage
Cboe's VIX Index options have seen record trading volumes during the last two years, with average daily volumes reaching over 851,000 contracts in 2024, up approximately
"Investors have long utilized VIX options and VIX futures to help hedge and manage volatility exposure, and Cboe is proud to expand our volatility product suite at such a critical time," said Catherine Clay, Global Head of Derivatives at Cboe. "With its options-on-futures structure, the new Options on VIX Futures will look to meet growing customer demand as Cboe works to provide an efficient and seamless experience to both existing and new CFE market participants. The launch will complement our existing volatility offerings, including the recently launched Cboe S&P 500 Variance futures, and enable more investors with the ability to help manage volatility and risk through the election season and beyond."
"20 years after Cboe launched VIX futures, followed by VIX options, and helped establish volatility as an asset class, we continue to prioritize product innovation, engage with our customers and bring new exchange-traded volatility derivatives to market," said Rob Hocking, Head of Product Innovation at Cboe. "We believe there is a strong demand for risk management tools, especially as investors prepare for the upcoming election and the recent change in the Fed's monetary policy. We've seen a shift in how investors are using options on a day-to-day basis, and with Options on VIX Futures having a mid-curve structure and the ability to offer short-term exposure, investors are expected to be able to manage short-term volatility with greater precision."
Christine Hansen, CEO at IMC US, said: "We are proud to support the expansion of listed volatility offerings from Cboe to meet the varying needs of investors"
Tom Chlada, Chief Operating Officer at Prime Trading, said: "Prime's investment philosophy is to protect and grow capital, and Cboe's new Options on VIX Futures will be a very welcomed addition to our toolkit, enabling us to better express views on volatility and fine-tune our risk management approach. We believe the new options will help boost participation and trading opportunities in the volatility space, and we look forward to incorporating this tool in our portfolios."
Keith DeCarlucci, Chief Investment Officer at Melqart KEAL Macro Fund, said: "VIX futures and options play an important role when managing portfolios, and we welcome Cboe's further expansion of its exchange-traded volatility tools with Options on VIX Futures. Combined with the recent variance futures launch, we have two new products to leverage."
Options on VIX futures will have European-style exercise, P.M. settlement and physically settle into front-month VIX future. At launch, CFE will list contract expirations for every day the week of October 21 with two additional Friday expirations. Each weekday beginning October 21, CFE plans to list a new contract for trading expiring on the same weekday in the week or weeks following.
The contracts will be regulated by the Commodity Futures Trading Commission (CFTC) and cleared by The Options Clearing Corporation (OCC).
The upcoming launch of Options on VIX Futures follows the recent launch of Cboe S&P 500 Variance (VA) futures, which are designed to offer a streamlined approach to trading the spread between implied and realized volatility. Both products add to Cboe's existing volatility suite and provide investors with exchange-traded solutions to manage market volatility ahead of and following the
On Friday, October 11 at 8:30 am ET, Cboe will be hosting a webinar with speakers from Allspring Global, IMC Financial Markets, and Golden Horse Fund Management on how Options on VIX Futures can enhance trading ease and accessibility. To register for the webinar, please click here. For more information about Options on VIX Futures, visit: Options on Cboe Volatility Index® Futures.
About Cboe Global Markets
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
Cboe Media Contacts | Cboe Analyst Contact | ||||
Angela Tu | Tim Cave | Kenneth Hill, CFA | |||
+1-646-856-8734 | +44 (0) 7593-506-719 | +1-312-786-7559 | |||
CBOE-C
CBOE-OE
Cboe®, CFE®, Cboe Futures Exchange®, VIX®, and Cboe Global Markets® are registered trademarks of Cboe Exchange, Inc. S&P®, SPX®, S&P 500®, DSPX®, DSPBX, US 500 and The 500 are registered trademarks of Standard & Poor's Financial Services LLC or its affiliates, and have been licensed for use by Cboe Exchange, Inc. and its affiliates (collectively "Cboe") for certain purposes. All other trademarks and service marks are the property of their respective owners.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI") and has been licensed for use by Cboe. Cboe exchange-traded products that have the S&P 500 Index or other S&P Indexes (collectively, the "S&P Indexes") as their underlying interest are not sponsored, endorsed, sold or promoted by S&P DJI or its affiliates (collectively, "S&P"). S&P does not make any representations or recommendations concerning the advisability of investing in products that have S&P Indexes as their underlying interests, and S&P will have no liability with respect thereto.
The S&P 500 Index has been licensed to Cboe Exchange, Inc. for the purposes of creating the Cboe S&P 500 Variance Indicator. "Variance Indicator" means a series over time of realized or implied variance values, which series uses as input for its calculation, among other values, one or more of the following values: the value of one or more Standardized Options Contracts based on an Underlying S&P Index, the value of another financial interest based on an Underlying S&P Index, or the value of an Underlying S&P Index. Cboe S&P 500 Variance Futures settling into the Cboe S&P 500 Variance Indicator are not issued, marketed, sponsored or promoted by S&P DJI or its affiliates, and S&P DJI will have no liability with respect thereto.
Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts. Certain risks associated with options, futures, and options on futures and certain disclosures relating to information provided regarding these products are also highlighted at https://www.cboe.com/us disclaimers.
Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with S&P, IMC, Prime Trading, Melqart Asset Management, Allspring Global, and Golden Horse Fund Management. Investors should undertake their own due diligence regarding their securities, futures, and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein.
Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.
Cboe Global Markets, Inc. and its affiliates make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the indices referenced in this press release to track the performance of their respective securities, generally, or the performance of the indices referenced in this press release or any subset of their respective securities, and shall not in any way be liable for any inaccuracies, errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the third-party indices referenced in this press release and shall not in any way be liable for any inaccuracies or errors in any of the indices referenced in this press release.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
View original content to download multimedia:https://www.prnewswire.com/news-releases/cboe-to-launch-options-on-vix-futures-on-monday-october-14-302272058.html
SOURCE Cboe Global Markets, Inc.
FAQ
When will Cboe launch Options on VIX Futures (Ticker: UX)?
What is the settlement process for Cboe's new Options on VIX Futures?
How has the trading volume of Cboe's VIX Index options changed in recent years?
What regulatory body will oversee Cboe's new Options on VIX Futures?
