Cboe to Launch New Options on VIX Futures

Cboe Global Markets has announced that it will launch new Options on Cboe Volatility Index (VIX) Futures, which will begin trading on the Cboe Futures Exchange (CFE) on October 14, 2024.

These new options are expected to provide investors with an additional tool to manage U.S. equity market volatility, complementing Cboe's existing suite of VIX Index options. The product's options-on-futures structure is designed to appeal to a broader range of market participants, including those who are restricted from trading securities-based options.

Cboe's VIX Index options have seen record trading volumes in recent years, with average daily volumes surpassing 851,000 contracts in 2024, representing a 60% increase compared to 2022. The surge in demand comes as more investors seek tools to hedge against and manage market volatility, particularly in the current economic and political environment. The new Options on VIX Futures aim to meet this growing demand, offering investors enhanced risk management capabilities during key periods, such as the U.S. election cycle and shifts in Federal Reserve policy.

"Investors have long utilized VIX options and VIX futures to help hedge and manage volatility exposure, and Cboe is proud to expand our volatility product suite at such a critical time," said Catherine Clay, Global Head of Derivatives at Cboe. "With its options-on-futures structure, the new Options on VIX Futures will look to meet growing customer demand."