CBOE and CFE to expand ETF-based volatility index products

Feb 17th, 2012 | By | Category: ETF and Index News
CBOE and CFE to expand ETF-based volatility index products

CBOE and CFE to expand ETF-based volatility index products. (CBOE Holdings Chairman and CEO William J. Brodsky pictured)

CBOE Holdings has announced that the Chicago Board Options Exchange (CBOE) and CBOE Futures Exchange (CFE) will each launch a new ETF-based volatility index product in the coming weeks:

CBOE Brazil ETF Volatility Index security futures (VXEW) – Tuesday, 21 February 21 on CFE

CBOE Brazil ETF Volatility Index options (VXEWZ) – Tuesday, 6 March on CBOE

The calculation of the CBOE Brazil ETF Volatility Index is derived from applying CBOE’s VIX methodology to the prices of CBOE listed options on the iShares MSCI Brazil Index Fund (ETF symbol: EWZ).

EWZ options were the seventeenth most actively traded ETF options in the US last year.

“We continue to see tremendous interest in trading VIX options and futures and our other volatility-related products and are committed to building our volatility franchise to meet this investor demand,” said CBOE Holdings Chairman and CEO William J. Brodsky. “Expanding our roster of volatility options and futures products into sectors such as emerging markets is the next step in this evolution.”

The CBOE Brazil ETF Volatility Index products are the latest in a series of CBOE and CFE volatility index product launches in 2012.  CFE began trading CBOE Emerging Markets ETF Volatility Index security futures (futures symbol: VXEM) on 9 January, and options trading on VXEEM began on 31 January on CBOE.

Barclays Capital will serve as the Lead Market Maker (LMM) for the CBOE Brazil ETF Volatility Index security futures at CFE.  Group One Trading will serve as the Designated Primary Market Marker (DPM) for VXEWZ options at CBOE.

CBOE is a leading innovator in the volatility space and currently publishes data on more than two dozen volatility-related benchmarks and strategies.

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