Cboe Global Markets has announced new options on Cboe Volatility Index (VIX) futures which are expected to begin trading on Cboe Futures Exchange (CFE) on 14 October.
Catherine Clay, global head of derivatives at Cboe
The new options on VIX futures will offer investors an additional tool to help manage US equity market volatility. They complement Cboe’s existing securities-based VIX index options, which are designed to provide similar risk management and yield enhancement capabilities.
The new product uses an option-on-future structure, which could potentially 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 over the past two years, with average daily volumes reaching over 851,000 contracts in 2024, up roughly 60% when compared to 2022.
“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 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.”
Read more: Cboe set to launch new Cboe S&P 500 Variance Futures
Cboe Global Markets added that options on VIX futures will have a European-style exercise, PM settlement and physically settle into front-month VIX future.
The contracts will be regulated by the Commodity Futures Trading Commission (CFTC) and cleared by The Options Clearing Corporation (OCC).