CHICAGO, April 17, 2018 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE |Nasdaq: CBOE), one of the world's largest exchange holding companies, today announced the launch of up-to-the-minute market estimates of one-year volatility, the Cboe One-Year Volatility Index (ticker: VIX1Y), calculated by using real-time prices of options in the S&P 500® Index (SPXSM).
"The introduction of VIX1Y will give traders the ability to track the relative movements of one-month and one-year expected volatility," said Michael Mollet, Director of Product Development for Cboe Global Markets. "We also expect the one-year index to be a useful tool to monitor the market's expectations for longer-term volatility for investors with longer-duration liabilities, such as insurance companies and pension funds."
The dissemination of the long-term One-Year VIX Index, which is calculated based on the VIX Index methodology, comes during Cboe's month-long celebration of the 25th anniversary of the Cboe Volatility Index® (VIX® Index). The original VIX Index, which Cboe began publishing in April 1993, measures the 30-day expected volatility of the S&P 500 Index. Cboe is exploring the development of a futures contract on the Cboe One-Year Volatility Index, which would be subject to regulatory review.
The VIX1Y uses SPX options on the March expiration cycle that reference most closely a 366-day maturity, then weights them to yield a constant measure of volatility in the S&P 500 Index over the period of approximately one year.
Cboe Global Markets, Inc. (Cboe: CBOE |Nasdaq: CBOE) is one of the world's largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. The company is committed to relentless innovation, connecting global markets with world-class technology, and providing seamless solutions that enhance the customer experience.
Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), the world's barometer for equity market volatility.
Cboe's trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe. In addition, the company is the second-largest stock exchange operator in the U.S. and a leading market globally for ETP trading.
The company is headquartered in Chicago with offices in Kansas City, New York, London, San Francisco, Singapore, Hong Kong and Quito, Ecuador. For more information, visit www.cboe.com.
Cboe®, Cboe Volatility Index® and VIX® are registered trademarks and Cboe Global MarketsSM and SPXSM are service marks of Cboe Exchange, Inc. S&P 500® is a trademark of Standard & Poor's Financial Services, LLC. Any products that have the S&P Index or Indexes as their underlying interest are not sponsored, endorsed, sold or promoted by Standard & Poor's or Cboe and neither Standard & Poor's nor Cboe make any representations or recommendations concerning the advisability of investing in products that have S&P indexes as their underlying interests. All other trademarks and service marks are the property of their respective owners.
Forward-Looking Statements Certain information contained in this news release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.