Asia-specific Vix indexes fail to ignite market interest

The Asian volatility index market is at a nascent stage with a number of Asian exchanges launching volatility-based indexes – and futures products on the back of those indexes. However, uptake has been slow, with liquidity and low volatility hampering widespread trading

Asia vol

The idea of an option-based implied volatility benchmark (Vix) was first introduced by the Chicago Board Options Exchange (CBOE) in 1993. This was met with limited success and in 2003, the CBOE updated the Vix methodology with the first exchange-traded contract launched in March 2004. However, it was only following the 2008 crisis that volumes on Vix futures and options have increased substantially with daily average volume for Vix options at 792,668 contracts for January (see chart).

Average

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