Global derivatives and securities exchange network Cboe Global Markets has announced that trading of its new Options on Cboe Volatility Index (VIX) Futures (UX) will begin on the Cboe Futures Exchange, LLC (CFE) on Monday, 14 October.
According to a press statement, the new Options provide investors an additional tool to help manage US equity market volatility, complementing Cboe’s existing securities-based VIX Index options, which are designed to provide similar risk management and yield enhancement capabilities. Utilising an option-on-future structure, the new product may allow more market participants, including those restricted from accessing securities-based options, to trade a VIX options product.
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 60% from 2022, as more investors have sought utility the options offer.
“Investors have long utilised 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.
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 realised volatility.
