CBOE Targets Extending VIX into Asian Hours Next YearNandini Sukumar
CBOE Holdings Inc. will extend the operation of its benchmark VIX futures index into Asian trading hours next year, according to the chief executive officer of the largest U.S. options market.
The Chicago-based exchange expanded opening hours into Europe a month ago. Volume during the 45-minute European session has risen to 6,500 contracts, CEO Edward Tilly said in an interview. The exchange will increase trading till it runs for 23 hours and 45 minutes of the day, he said.
“We will continue to extend hours in a phased way ’til we’re trading almost through the full day,” Tilly said at the Futures Industry Association Asia conference in Singapore. “The volume in the extra 45 minutes is the kind of encouraging sign we look for. We will have a 15-minute close, though we are seeking a full trading day.”
CBOE has exclusive rights to the VIX. It offers options and futures on the benchmark and on Oct. 1 it introduced the CBOE S&P 500 Short-Term Volatility Index that tracks nine-day options on the Standard & Poor’s 500 Index. The VIX, also known as the CBOE Volatility Index and the company’s most famous gauge, measures 30-day options on the S&P 500.
Futures on the VIX can be traded from 3 a.m. to 4:15 p.m. New York time every weekday, with an additional session from 4:30 p.m. to 5:15 p.m. New York time on Monday through Thursday.