CME Group to release futures on Nasdaq-100 Volatility Index

Derivatives marketplace CME Group and Nasdaq announced plans for launching new futures contract on the Nasdaq-100 Volatility Index (VOLQ). CME Group will introduce the new Nasdaq-100 Volatility Index futures contracts on 5 October, pending regulatory approval.

Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products said:

Tim McCourt, CME Group

Tim McCourt
Source: LinkedIn

We’re pleased to further build on our longstanding, successful relationship with Nasdaq to offer these new futures contracts on the innovative Nasdaq-100 Volatility Index. VOLQ futures respond directly to growing demand for tools to hedge portfolio volatility exposure or trade at-the-money volatility on a leading global benchmark equity index, the Nasdaq-100. Additionally, they will complement our deeply liquid Nasdaq futures and options product line, including the benchmark E-mini and Micro E-mini Nasdaq-100 contracts.

CME Group

Lauren Dillard, EVP and Head of Nasdaq’s Global Information Services commented:

Lauren Dillard, Nasdaq

Lauren Dillard

The Nasdaq-100 index tracks the world’s most innovative companies and has shown incredible strength and resilience through its outstanding performance. The VOLQ index enables investors to track Nasdaq-100 volatility, and CME Group’s launch of VOLQ futures is a great step in bringing more innovative products around market volatility to investors.

VOLQ Index was introduced by Nasdaq in early 2019. The index measures 30-day implied volatility of the Nasdaq-100 Index (NDX) and helps market participants better understand and manage portfolio volatility.

This real-time volatility index is conveyed by the prices of certain listed NDX options to obtain precise, options prices. This approach allows volatility traders to use an implied volatility index that focuses on the options increasingly used by strategists, hedgers and traders.

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