CFE and CBOE to launch futures and options on Crude Oil ETF Volatility Index

Mar 14th, 2012 | By | Category: Commodities

CBOE Crude Oil ETF Volatility Index (OVX Index) security futures will begin trading on CFE on Monday 26 March, and options on the OVX Index will begin trading on CBOE on Tuesday 10 April, according to a statement by CBOE Holdings.

CFE and CBOE to launch futures and options on Crude Oil ETF Volatility Index

CFE and CBOE have announced that they are to launch futures and options contracts on the Crude Oil ETF Volatility Index.

The derivatives, based on listed options prices of the United States Oil Fund ETF (USO), the ninth most actively-traded ETF options contract in the US last year, will allow traders to hedge volatility risk associated with crude oil futures prices.

CBOE began disseminating values on the OVX Index in 2008. The OVX Index calculation is derived from applying CBOE’s VIX methodology to the prices of CBOE-listed options on USO.

OVX Index products will be the most recent additions to a series of CBOE and CFE volatility index products launched this year.

CFE began trading CBOE Emerging Markets ETF Volatility Index security futures (VXEM) on 9 January, and CBOE began trading CBOE Emerging Markets ETF Volatility Index (VXEEM) options on 31 January.

CBOE Brazil ETF Volatility Index security futures (VXEW) and CBOE Brazil ETF Volatility Index (VXEWZ) options opened for trading on 21 February on CFE and on 6 March on CBOE, respectively.

Barclays Capital will serve as the Lead Market Maker (LMM) for OV security futures traded on CFE, and Group One Trading will serve as the Designated Primary Market Marker (DPM) for OVX options traded on CBOE.

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