CHICAGO, Aug. 18, 2020 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), one of the world's largest exchange
holding companies, announced the successful launch of its Mini Cboe
Volatility Index futures, which began trading on Cboe Futures
Exchange (CFE) on Sunday, August 9 at
5:00 p.m. CT with the opening of
CFE's global trading hours session.
Trading volume in the new Mini VIX futures contract (ticker
symbol: VXM) totaled nearly 127,000 contracts during the first
week. The launch of the new product was off to a strong start, with
more than 25,000 total contracts traded on Monday, August 10 and trading continued to be
active throughout the week, reaching a high mark of more than
32,000 total contracts on Friday, August 14. Approximately
23,000 contracts, or 18% of total volume traded in the week,
occurred during CFE's global extended trading hours.
Trading
Day
|
Global Trading
Hours Volume
|
Regular Trading
Hours Volume
|
Total
Volume
|
Monday, August
10
|
4,800
|
20,331
|
25,131
|
Tuesday, August
11
|
2,126
|
13,888
|
16,014
|
Wednesday, August
12
|
6,459
|
16,034
|
22,493
|
Thursday, August
13
|
3,693
|
27,128
|
30,821
|
Friday, August
14
|
6,018
|
26,457
|
32,475
|
Arianne Criqui, Head of
Derivatives and Global Client Services at Cboe Global Markets,
said: "We are pleased with the successful launch of Mini VIX
futures and encouraged by the strong customer participation we've
seen early on. Trading volume has been solid and market quality –
in the form of liquidity and tight spreads – has been excellent,
reflecting the demand from market participants for additional tools
tracking the VIX Index to gain broad market volatility exposure.
Our customers have long turned to VIX futures as the preferred
volatility management tool, and we believe the manageably sized,
cost-effective Mini VIX futures could gain similar traction among a
broad base of investors."
CFE's new Mini VIX futures contract shares the same contract
terms as the standard VIX futures contract, but is
1/10th the size of the standard contract. The design of
the mini contract provides similar utility as the standard
contract, but its smaller size requires less capital to achieve the
same exposure. Additionally, Mini VIX futures provide investors
additional flexibility and precision in volatility risk
management.
With the launch of the new smaller sized contract, Cboe aims to
meet investor demand for a wider variety of tools to gain direct
exposure to the VIX Index, as well as the growing interest in
small-sized contracts for derivatives trading. The new
contract builds on the success of VIX futures and further expands
Cboe's suite of volatility products, offering new trading
opportunities for market participants to construct their own views
on volatility or to tailor their own volatility strategies using
Mini VIX futures.
The utility of the Mini VIX futures contract is expected to
appeal to a broad set of market participants, including Commodity
Trading Advisors (CTAs), Futures Commission Merchants (FCMs),
proprietary trading firms, institutional investors and
sophisticated retail investors, and may provide opportunities to
hedge a portfolio, employ strategies in an effort to generate
returns from relative pricing differences, or express a bullish,
bearish or neutral outlook for broad market implied volatility.
Introduced by CFE in 2004, VIX futures (ticker symbol: VX)
provide market participants with opportunities to trade their view
of the future direction of the expected volatility of the S&P
500® Index. VIX futures also help enable market participants to
trade a liquid volatility product based directly on the VIX Index,
helping them manage risk, generate alpha or diversify a portfolio.
VIX futures are designed to reflect the market's estimate of the
value of the VIX Index on various expiration dates in the future,
thus providing market participants with a variety of opportunities
to implement their views using volatility trading strategies. Since
their launch in 2004, a total of 491.1 million VIX futures
contracts have traded at
CFE1.
In the coming months, Cboe expects to provide a Mini VIX futures
user guide and to host webinars about Mini VIX futures. For
additional information on CFE's Mini VIX futures, including
contract specifications, potential strategies and product
disclosure, visit: www.cboe.com/vixfutures.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) is one of the world's largest
exchange holding companies, offering cutting-edge trading and
investment solutions to investors around the world. The company is
committed to defining markets to benefit its participants and drive
the global marketplace forward through product innovation, leading
edge technology and seamless trading solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S., Canadian and European equities, exchange-traded products
(ETPs), global foreign exchange (FX) and volatility products based
on the Cboe Volatility Index (VIX Index), recognized as the world's
premier gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe and is a leading market
globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Media
Contacts
|
|
Analyst
Contact
|
|
Angela
Tu
|
Tim
Cave
|
|
Debbie
Koopman
|
|
+1-646-856-8734
|
+44 (0)
7593-506-719
|
|
+1-312-786-7136
|
|
atu@cboe.com
|
tcave@cboe.com
|
|
dkoopman@cboe.com
|
|
CBOE-C
CBOE-EF
Cboe®, Cboe Volatility Index®, CFE®, and VIX® are registered
trademarks and Cboe Global MarketsSM and Cboe Futures
ExchangeSM and Mini VIXSM are service
marks of Cboe Exchange, Inc. Standard & Poor's®,
S&P®, and S&P 500® are registered trademarks of
Standard & Poor's Financial Services, LLC, and have been
licensed for use by Cboe Exchange, Inc. All other trademarks
and service marks are the property of their respective
owners.
It is important for market participants to understand the
following before trading Mini VIX futures: Mini VIX futures are
complicated financial products that are suitable only for
sophisticated market participants. Mini VIX futures involve the
risk of loss, which can be substantial and can exceed the amount of
money deposited for the futures position. Market participants
should put at risk only funds that they can afford to lose without
affecting their lifestyles. Before transacting in Mini VIX futures,
market participants should fully inform themselves about the
characteristics and risks of Mini VIX futures, including in
particular those described at www.Cboe.com/MiniVIX. Mini VIX
futures market participants also should make sure they understand
the product specifications and the methodologies for calculating
the underlying VIX Index and the settlement values for Mini
VIX futures.
Futures trading is not suitable for all investors and
involves the risk of loss. That risk of loss can be substantial and
can exceed the amount of money deposited for a futures position.
You should, therefore, carefully consider whether futures trading
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 futures trading risks, see the Risk Disclosure Statement
in Appendix A to CFTC Regulation 1.55(c).
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.
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, to the maximum extent permitted by applicable law,
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
S&P 500 index to track the performance of its strategy, and
shall not in any way be liable for any inaccuracies or
errors. Cboe Global Markets, Inc. and its affiliates have not
calculated, composed or determined the constituents or weightings
of the securities that comprise the S&P 500 index and shall not
in any way be liable for any inaccuracies or errors.
Cautionary Statements Regarding Forward-Looking
Information
Certain information contained in this press
release may constitute forward-looking statements. We caution
readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made and are subject to
a number of risks and uncertainties.
1Through August 17,
2020
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SOURCE Cboe Global Markets, Inc.