CFE To Launch S&P 500 Variance Futures On December 10 New Contract Mirrors Quoting Conventions and Economic Performance of Over-the-Counter S&P 500 Variance Swaps
CHICAGO, Dec. 3, 2012 /PRNewswire/ -- CBOE Futures Exchange, LLC (CFE) announced today that it plans to launch trading in S&P 500 Variance futures on Monday, December 10.
The S&P 500 Variance futures contract, like over-the-counter (OTC) variance swaps, allows users to trade the difference between the implied and realized variance of the S&P 500 Index. CFE's variance futures contract will offer the same quoting conventions and economic performance of OTC variance swaps and will provide the advantages of exchange-traded contracts -- transparency, price discovery and counterparty clearing guarantees.
The new S&P 500 Variance futures contract is designed to offer benefits to both existing OTC users and to customers who have not traditionally participated in the OTC variance swap market.
"The S&P 500 Variance futures contract is our latest effort to attract over-the-counter participants to our marketplace by customizing our proprietary products and services to fit their needs," CBOE Holdings President and COO Edward T. Tilly said. "We're seeing OTC market participants increasingly look to exchange-traded products to mitigate risk, and S&P 500 Variance futures will be an appealing addition to our line of OTC-like products."
CFE will also begin a Lead Market Maker Program (LMM) for S&P 500 Variance futures, and an affiliate of DRW Trading Group has been approved as an LMM. DRW Trading Group is a principal trading organization that trades across a wide range of asset classes for its own account.
For more information on S&P 500 Variance futures: www.cfe.cboe.com/Products/Products_VA.aspx.
About CBOE Futures Exchange:
CFE currently offers nine contracts: CBOE Volatility Index (The VIX Index) futures (VX), Mini-VIX futures (VM), CBOE Nasdaq-100 Volatility Index (VXN) futures (VN), CBOE Gold ETF Volatility Index (GVZ) security futures (GV), CBOE Crude Oil ETF Volatility Index (OVX) security futures (OV), CBOE Emerging Markets ETF Volatility Index (VXEEM) security futures (VXEM), CBOE Brazil ETF Volatility Index (VXEWZ) security futures (VXEW), CBOE S&P 500 3-Month Variance futures (VT), and Radar Logic 25-Metropolitan Statistical Area (MSA) RPX Composite Index futures (RPXCP). CFE, a wholly-owned subsidiary of CBOE Holdings, Inc. (NASDAQ: CBOE), offers an all-electronic, open-access market model, with traders providing liquidity and making markets. CFE is regulated by the Commodity Futures Trading Commission (CFTC) and all trades are cleared by the OCC. More information on CFE and its products, including contract specifications, can be found at: http://cfe.cboe.com/.
CBOE®, Chicago Board Options Exchange®, CFE®, CBOE Volatility Index® and VIX® are registered trademarks, and CBOE Futures ExchangeSM, CBOE Brazil ETF Volatility IndexSM, VXEWSM, CBOE Crude Oil ETF Volatility IndexSM, OVXSM, CBOE Emerging Markets ETF Volatility IndexSM, VXEMSM, CBOE Emerging Market Brazil ETF IndexSM, VXEWSM, GVZSM, VOWSM and WeeklysSM are servicemarks of Chicago Board Options Exchange, Incorporated (CBOE). 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 and CFE. The Nasdaq-100 Index®, Nasdaq-100®, and Nasdaq® are trademark or service marks of The Nasdaq Stock Market, Inc. (with which its affiliates are the "Corporations"). These marks are licensed for use by CBOE in connection with the trading of products based on the Nasdaq-100 Index. The products have not been passed on by the Corporations as to their legality or suitability. The products are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S). All other trademarks and servicemarks are the property of their respective owners.
SOURCE CBOE Futures Exchange, LLC