The CBOE Futures Exchange LLC will expand trading hours for futures linked to the benchmark gauge for U.S. options prices by late September after delaying the move following a trading outage earlier this year.
Futures on the Chicago Board Options Exchange Volatility Index, or VIX, will trade in a new 45-minute period that begins at 4:30 p.m. in New York, starting at the end of September based on an e-mailed statement from the exchange. CFE will add five hours before the current 8 a.m. start in a second phase implemented during the following weeks.
The Chicago-based exchange is almost doubling trading on the VIX futures as part of a move toward around-the-clock market access. CBOE Holdings Inc. (CBOE), which owns CFE, has said that it intends to expand trading for VIX futures to 24 hours, five days a week starting this year.
CBOE canceled a planned May 30 launch of the extended hours after work in preparation for reconfiguring its computer systems for the longer trading window caused an April 25 malfunction that shut the CBOE for three-and-a-half hours.
The extensions mean the VIX contracts will trade from 3 a.m. to 4:15 p.m. five days a week. The evening session from 4:30 p.m. to 5:15 p.m. will mark the start of a new trading day and be available Monday through Thursday, CFE said.
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