CBOE Futures Exchange to launch security futures trading in emerging markets volatility index

CBOE Futures Exchange to launch security futures trading in emerging markets volatility index

06/01/2012

CBOE Futures Exchange, LLC (CFE) announced today that it will launch trading in security futures on the CBOE Emerging Markets ETF Volatility Index (Index ticker: VXEEM; futures symbol: VXEM) on Monday, January 9, pending regulatory approval.

The VXEEM Index reflects the implied volatility of the iShares MSCI Emerging Markets Index exchange-traded fund (ETF) (ticker: EEM). EEM options were the eleventh most actively traded option at CBOE in 2011.

In addition to hedging emerging markets volatility exposure or making direct plays on emerging markets volatility, VXEM security futures — in conjunction with other volatility products — will allow market participants to trade cross-index or cross-asset volatility. 

Barclays Capital will be a Lead Market Maker for VXEM security futures.

"We are delighted that Barclays Capital has taken on a market-making role," said CFE Managing Director Jim Lubin. "Their expertise in volatility trading should help us create a deep and liquid market in VXEM futures. Further, we look forward to working with them to build out our suite of volatility offerings."

The VXEM security futures contract is the first of several sector-specific ETF and single-stock CBOE Volatility Index products that CFE plans to launch in 2012.

In addition to VXEM security futures, on December 22, 2011, CFE filed with the Commodity Futures Trading Commission to list security futures on the following volatility indexes:

  • VXAPL - CBOE Equity VIX on Apple (AAPL)
  • VXAZN - CBOE Equity VIX on Amazon (AMZN)
  • VXGS - CBOE Equity VIX on Goldman Sachs (GS)
  • VXGOG - CBOE Equity VIX on Google (GOOG)
  • VXIBM - CBOE Equity VIX on IBM (IBM)
  • OVX - CBOE Crude Oil ETF Volatility Index (USO)
  • VXFXI - CBOE China ETF Volatility Index (FXI)
  • VXEWZ - CBOE Brazil ETF Volatility Index (EWZ)
  • VXGDX - CBOE Gold Miners ETF Volatility Index (GDX)
  • VXXLE - CBOE Energy Sector ETF Volatility Index (XLE)

Price history, charts and contract specifications for the VXEEM Index and VXEM security futures are available at www.cboe.com/VXEEM.

CBOE, known as the home of volatility indexes, currently publishes data on more than a two dozen different volatility-related benchmarks and strategies.