CHICAGO, July 13, 2020 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), one of the world's largest exchange
holding companies, today announced plans to launch trading in Mini
Cboe Volatility Index (VIX) futures on Cboe Futures Exchange (CFE)
beginning Monday, August 10, subject
to regulatory review.
The new smaller-sized contract builds on the success of VIX
futures – the most actively traded, exchange-listed volatility
futures contract in the world – and aims to meet investor demand
for a wider variety of tools to gain direct exposure to the VIX
Index, recognized as the world's premier gauge of U.S. equity
market volatility.
New Mini VIX futures (ticker symbol: VXM) will be structured
like the standard VIX futures contract, but will feature a
$100 multiplier, making them
one-tenth the size of the standard contract. The smaller notional
value of the mini contract is designed to provide additional
flexibility in volatility risk management and greater precision
when allocating among smaller, managed accounts, which 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.
Ed Tilly, Chairman, President and
Chief Executive Officer of Cboe Global Markets, said: "As the
pioneer of the VIX Index and volatility trading, Cboe is pleased to
further expand our VIX product suite with a mini contract that aims
to bring VIX futures trading to a larger universe of investors and
serve a variety of investment needs. Designed to provide broad
market volatility exposure in a more manageably sized, cost
effective contract, the flexibility of Mini VIX futures may also
create new trading opportunities and offer additional tools for
market participants to construct their own views on volatility or
to tailor their own volatility strategies using Mini VIX futures."
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 486.5 million VIX futures
contracts have traded at CFE1.
Similar to the standard VIX futures, Mini VIX futures will be
available during regular and global trading hours, and feature
cash-settlement, monthly expirations and trade at settlement (TAS)
transactions. CFE is regulated by the CFTC and trades are cleared
through the OCC. As with other futures offerings, CFE expects to
have a number of liquidity providers committed to supporting
two-sided markets.
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, 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. 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
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Analyst
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Angela
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Tim
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Debbie
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+1-646-856-8734
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+44 (0)
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+1-312-786-7136
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atu@cboe.com
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tcave@cboe.com
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dkoopman@cboe.com
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CBOE-C
CBOE-EF
Cboe®, Cboe Volatility Index®, CFE®, and VIX® are registered
trademarks and Cboe Global MarketsSM and Cboe Futures
ExchangeSM is a service mark 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.
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.
1 Through June 30,
2020.
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SOURCE Cboe Global Markets, Inc.