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Worries About VIX Funds Drag Cboe’s Shares to a Record Decline

  • One big VIX fund is closing, another lost most of its value
  • VIX derivatives provide about a quarter of Cboe’s revenue
Bloomberg business news
Bloomberg’s Jan-Henrik Foerster reports on Credit Suisse buying back one of its exchange-traded notes.(Source: Bloomberg)
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Cboe Global Markets Inc.’s been one of the surest bets out there, rallying seven straight years on the back of its famous VIX franchise. But a crack just formed in that pillar of growth for the company, sending its shares tumbling a record 17 percent.

About a quarter of the exchange’s revenue in the second half of last year came from futures and options tied to the VIX, according to a Keefe Bruyette & Woods Inc. analyst who called the products “a meaningful growth driver for the company.”