CHICAGO, July 6, 2015 /PRNewswire/ -- CBOE Futures Exchange, LLC (CFE®) today announced that it plans to list futures with weekly expirations on the CBOE Volatility Index® (VIX® Index) beginning Thursday, July 23, 2015, subject to regulatory review. VIX Weeklys options at CBOE are expected to follow, also subject to regulatory approval.
The VIX Index is based on real-time prices of options on the S&P 500® Index (SPX) and is designed to reflect investors' consensus expectations for 30-day stock market volatility. Standard VIX futures and options expire monthly. Weekly VIX futures and options expirations offer convergence to the VIX cash index four to five times per month, instead of once a month. Generally, the closer VIX futures and options get to expiration, the closer they tend to parallel the underlying VIX Index.
"We're pleased to launch VIX Weeklys futures, giving investors a new way to trade the world's premier benchmark of equity market volatility," said CBOE Holdings CEO Edward T. Tilly. "The addition of VIX weekly expirations to standard monthly expirations offers volatility exposures that more closely track the performance of the VIX Index. VIX Weeklys futures will give investors more opportunities to trade VIX and greater trading precision when responding to breaking news and economic events."
CBOE pioneered the concept of 'Weeklys' in 2005 and today they are among the industry's fastest-growing products. Contracts with weekly expirations allow investors to implement more targeted buying, selling, spreading and hedging strategies.
New weekly expirations for VIX futures will be listed on Thursdays (excluding holidays) and expire on Wednesdays. CFE may list up to six consecutive weekly expirations for VIX Weeklys futures. VIX Weeklys futures will be available during CFE's regular and extended trading hours. For more information on VIX Weeklys futures, go to www.cboe.com/VIXWeeklys/.
About CBOE Futures Exchange CBOE Futures Exchange (CFE) offers contracts on CBOE Volatility Index (VIX Index) futures (VX), S&P 500 Variance futures (VA), CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (TYVIX) futures (VXTY) and CBOE Russell 2000 Volatility Index (RVX) futures (VU).
VIX futures are available for trading nearly 24 hours a day, five days a week at CFE, beginning Sunday at 5:00 p.m. CT and ending Friday at 3:15 p.m. CT. CFE closes for 15 minutes between 3:15 p.m. CT and 3:30 p.m. CT, Monday through Thursday, after which the next trading day begins at 3:30 p.m. CT. For additional details on extended trading hours, see www.cboe.com/ETH.
CFE, an all-electronic market, is a wholly-owned subsidiary of CBOE Holdings, Inc. (NASDAQ: CBOE). 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®, Execute Success®, CBOE Volatility Index® and VIX® are registered trademarks, and CBOE Futures ExchangeSM, CBOE/CBOT 10-year U.S. Treasury Note Volatility IndexSM, CBOE Russell 2000 Volatility IndexSM, VXSM, VASM, TYVIXSM, VXTYSM, RVXSM, and VUSM are service marks 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. Russell® and Russell 2000® are registered trademarks of the Frank Russell Company, used under license. CBOT is a trademark of CME Group, Inc. (CME). CBOE has, with the permission of CME, used such trademark in the CBOE/CBOT 10-year U.S. Treasury Note Volatility Index. CME makes no representation regarding the advisability of investing in any investment product that is based on such index.All other trademarks and service marks are the property of their respective owners.