Menu

Cboe Mini VIX futures daily volume exceeds 100K contracts



Exchange holding company Cboe Global Markets, Inc. announced that trading in its newly launched Mini Cboe Volatility Index (Mini VIX) futures surpassed the 100,000-contract mark for the first time. On Thursday, 27 August, the daily volume for the Mini VIX reached 117,814 contracts.

The Mini VIX (VXM) was launched on Cboe Futures Exchange (CFE) on 9 August. In the first 14 trading days, the volumes reached more than 521,000 contracts with average daily volume (ADV) of 37,000 contracts. The numbers reflected the strong interest of market participants in the global trading community.

Arianne Criqui, Head of Derivatives and Global Client Services at Cboe, commented:

Arianne Criqui, Cboe
Arianne Criqui

We are excited to reach a significant milestone this week with Mini VIX futures. We are also encouraged by the traction the contract is building, not only in strong trading volume and excellent market quality and liquidity, but also in the growing adoption of Mini VIX futures by a diverse mix of market participants, including proprietary trading firms and brokerages, as well as market makers and commodity trading advisors. These are very early days, and we expect participation to continue to grow as more customers learn about the contract’s versatility in providing opportunities to manage risk, generate alpha and diversify their portfolios.

Cboe Global Markets

Mini VIX and standard VIX futures share the same contract terms but the Mini VIX are one-tenth the size of the standard contract and require less capital expenditure to gain exposure to the VIX Index. They aim to provide investors with more flexibility and precision in volatility risk management.

Broad set of market participants see the appeal of the mini VIX futures, such as commodity trading advisors (CTAs), futures commission merchants (FCMs), proprietary trading firms, institutional investors and sophisticated retail market participants. The mini VIX futures provide them with 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.

Cboe expects to provide its users with Mini VIX futures user guide and to host webinars about Mini VIX futures in the near future.

Earlier in August, Cboe published July 2020 volumes with some fluctuations in the market from previous months back after having settled down in June.

arrow

Cboe Mini VIX futures daily volume exceeds 100K contracts

0
Send this to a friend