31 August 2020 | AtoZ Markets – Cboe Global Markets is one of the largest exchanges holding companies. The company launched Mini VIX futures on the Cboe Futures Exchange (CFE) on 10 August. Moreover, The new futures contract reflects the market's estimate value of the VIX index at various future expiration dates. It is one-tenth of the size of standard VIX futures. It designs to increase volatility risk management flexibility and provide greater accuracy when allocating to smaller managed accounts.
Mini VIX Futures Daily Volume Exceeds 100k Contracts for First Time
Cboe announced that the Mini VIX futures contract surpassed 100,000 marks for the first time, with a daily trading volume reaching 117,814 contracts on 27 August. In the first 14 days of trading, the average daily volume (ADV) was 37,000 contracts, and the total volume was more than 521,000 contracts. Widespread participation from diverse market participants continues, including increased interest from brokers. According to Cboe, the market was excellent during both regular trading hours and global trading hours. Arianne Criqui, Head of Derivatives and Global Client Services at Cboe, said:
"We are excited to reach a significant milestone this week with Mini VIX futures. We are also encouraged by the traction the contract is building, not only in strong trading volume and excellent market quality and liquidity but also in the growing adoption of Mini VIX futures by a diverse mix of market participants, including proprietary trading firms and brokerages, as well as market makers and commodity trading advisors. These are very early days. We expect participation to continue to grow. More customers learn about the contract's versatility in providing opportunities to manage risk, generate alpha, and diversify their portfolios."
A week after the successful launch of Mini VIX futures, its trading volume reached approximately 127,000 contracts, with more than 20 companies participating as market makers. It also exceeded 25,000 contracts on the first day of trading. Market participants in the global trading community are showing strong interest.
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