14 July, 2020 | AtoZ Markets – Cboe Global Markets is a US exchange holding company including Chicago Board Options Exchange (CBOE). It provides trading and investment solutions worldwide. The company offers options, futures, equities, exchange-traded products (ETP), and Cboe Volatility Index (VIX Index). Its headquarter is in Chicago.
Cboe Futures Exchange Will List Mini VIX Futures
Cboe Global Markets announced its plans to list Mini Cboe Volatility Index (VIX) futures on the Cboe Futures Exchange (CFE) from the 2nd week of August. New Mini VIX futures (ticker symbol: VXM) are Cboe Volatility Index (VIX Index) cash-settled futures with a contract size of one-tenth and a contract multiple of $100.
VIX futures also allow market participants to trade with a volatility product based on the VIX Index. It will help the investor to manage risk, generate alpha, or portfolio diversification. Cboe Global Markets said:
"The new smaller-sized contract builds on the success of VIX futures. It is the most actively traded, exchange-listed volatility futures contract in the world. Moreover, it aims to meet investor demand for a variety of tools to gain direct exposure to the VIX Index. It recognized as the world’s premier gauge of U.S. equity market volatility."
VXM futures trading will be with ticker symbol VXMT. Trading hours for expired VXMT futures will end at 3:15 pm (CT) the day before the final settlement date. Cboe Futures Exchange said:
"VXM futures will have the same trading hours as VX futures. Regular trading hours for VXM futures will be Monday – Friday from 8:30 am CT – 3:15 pm CT. Extended trading hours for VXM futures will be on business days Monday - Friday, from 5:00 pm (previous day) to 8:30 am CT and 3:30 pm CT to 4:00 pm CT. Trading hours for an expiring VXM futures contract will end at 8:00 am CT on its final settlement date."
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