Cboe Global Markets announced this week that it expects to launch its new Options on Cboe Volatility Index (VIX) Futures on Monday, October 14.
Cboe Set to Launch Options on VIX Futures on October 14
The new options, which will trade under the ticker UX, are expected to provide investors with an additional tool to manage U.S. equity market volatility.
They will complement Cboe’s existing securities-based VIX Index options and may allow more market participants to trade a VIX options product.
Cboe’s VIX Index options have seen record trading volumes in recent years, with average daily volumes reaching over 851,000 contracts in 2024. This represents an approximately 60% increase from 2022.
“Investors have long utilized VIX options and VIX futures to help hedge and manage volatility exposure,” said Catherine Clay, Global Head of Derivatives at Cboe. “With its options-on-futures structure, the new Options on VIX Futures will look to meet growing customer demand as Cboe works to provide an efficient and seamless experience to both existing and new CFE market participants.”
Rob Hocking, Head of Product Innovation at Cboe, commented: “We believe there is a strong demand for risk management tools, especially as investors prepare for the upcoming election and the recent change in the Fed’s monetary policy.”
Cboe explained that options on VIX futures will have European-style exercise, P.M. settlement, and physically settle into front-month VIX future.
The Commodity Futures Trading Commission (CFTC) will regulate the contracts, while they will be cleared by The Options Clearing Corporation (OCC).
Following the recent launch of Cboe S&P 500 Variance (VA) futures, the upcoming release of Options on VIX Futures further expands Cboe’s existing volatility suite, offering investors exchange-traded solutions to effectively manage market volatility.
