CBOE launches volatility index futures

CBOE Futures Exchange (CFE) has announced the launch of two volatility index futures contracts, based on the CBOE Nasdaq-100 Volatility Index and the CBOE Russell 2000 Volatility Index.

CBOE Volatility Indexes are designed to reflect investors’ consensus view of expected volatility over the next 30 days in the respective underlying indexes. They are derived from options prices of each index traded at CBOE.

The new contracts expand the suite of volatility contracts offered at Chicago Board Options Exchange (CBOE) and CFE, which includes options and futures on the CBOE Volatility Index (VIX), futures on the CBOE DJIA Volatility Index (VXD), CBOE S&P 500 3-month Variance (VT) futures and CBOE S&P 500 12-month Variance (VA) futures.

The contracts will start on July 6, under licensing agreements with the Nasdaq stock market and the Russell Investment Group.

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