CHICAGO, March 26, 2024 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today marked the 20th anniversary of Cboe Futures Exchange (CFE) and the trading of Cboe Volatility Index (VIX) futures. CFE was launched to provide a liquid and transparent on-exchange volatility futures offering, with VIX futures being the first product listed in 2004.
On March 26, 2004, CFE successfully opened for trading, with 449 VIX futures contracts trading on the all-electronic exchange. Based on the VIX Index, which has served as a premier gauge for U.S. equity market sentiment since its launch in 1993, VIX futures are among the most actively traded exchange-listed volatility futures in the world, with total volumes reaching 53.7 million contracts in 2023. VIX futures, and the addition of VIX options in 2006, were a pivotal first step in making volatility a tradable asset class, breaking down access barriers for investors and paving the way for the development of a comprehensive ecosystem including additional futures, options and other exchange-traded products (ETPs) utilizing these derivatives.
"Cboe has been a pioneer in the volatility space and helped establish volatility as a tradeable asset class with the launch of VIX futures in 2004, and 20 years later, we remain steadfast in our approach to developing sophisticated strategies into exchange-listed futures," said Laura Fuson, Vice President and Head of Futures at Cboe Global Markets. "Cboe Futures Exchange offers participants access to liquid and transparent risk management solutions and the ability to trade volatility around major market events, such as economic data or elections. By continuing to work with our partners and clients, we aim to build upon Cboe's rich history of innovation and help provide investors the tools they seek to better manage their portfolios."
VIX futures reflect the market's estimate of the value of the VIX Index on various expiration dates in the future and can provide market participants with a variety of opportunities to implement their view of U.S. equity market volatility using risk management, alpha generation and portfolio diversification trading strategies. The VIX Index is designed to measure 30-day expected volatility of the U.S. stock market using S&P 500 Index options. Through Cboe's global trading hours session, VIX futures are available to investors around the world nearly 24 hours a day, five days a week.
Today, two decades after its launch, CFE continues to break down access barriers and bring complex trades to the exchange-listed, centrally cleared environment. CFE has expanded beyond traditional VIX futures and now offers weekly expirations for VIX futures, a smaller VIX futures contract size designed to be more accessible, and transparent and efficient risk management solutions for fixed income markets through U.S. corporate bond index futures and options on those futures.
Along with Cboe Labs, Cboe's in-house innovation arm, CFE is exploring additional product offerings including new S&P 500 Variance Futures and futures tied to the Cboe S&P 500 Dispersion Index (DSPX), both subject to regulatory review. Cboe's S&P 500 Variance futures are expected to be cash-settled contracts based on the realized variance of the S&P 500 Index and their design is expected to leverage market feedback from Cboe's previous variance futures offerings. DSPX futures could potentially help investors manage their exposure to the S&P 500 Index and express expected dispersion views. Both products aim to transform complex trades into accessible, exchange-listed offerings.
Learn more about all of CFE's offerings at https://www.cboe.com/us/futures/.
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.
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Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX® are registered trademarks of Cboe Exchange, Inc. or its affiliates. S&P®, SPX®, S&P 500® and DSPX® are registered trademarks of Standard & Poor's Financial Services, LLC, and have been licensed for use by Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners.
The S&P 500 Index and the Cboe S&P 500 Dispersion Index are products of S&P Dow Jones Indices LLC and have been licensed for use by Cboe Exchange, Inc. including for use with the VIX Index. Any Cboe exchange-traded products that have the VIX Index, S&P 500 Index, Cboe S&P 500 Dispersion Index or other S&P Indexes (collectively, the "S&P Indexes") as their underlying interest are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Standard & Poor's Financial Services LLC or their affiliates (collective, "S&P") and S&P does not make any representations or recommendations concerning the advisability of investing in products that have S&P indexes as their underlying interests. All other trademarks and service marks are the property of their respective owners.
Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with S&P. Investors should undertake their own due diligence regarding their securities, futures, and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein.
Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.
Cboe Global Markets, Inc. and its affiliates make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the indices referenced in this press release to track the performance of their respective securities, generally, or the performance of the indices referenced in this press release or any subset of their respective securities, and shall not in any way be liable for any inaccuracies, errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the third-party indices referenced in this press release and shall not in any way be liable for any inaccuracies or errors in any of the indices referenced in this press release.
There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/us_disclaimers/.
Options involve risk and are not suitable for all market participants. Prior to buying or selling an option, a person should review the Characteristics and Risks of Standardized Options (ODD), which is required to be provided to all such persons. Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606.
Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts.
The iBoxx iShares $ High Yield Corporate Bond Index and the iBoxx iShares $ Investment Grade Corporate Bond Index ("iBoxx iShares $ Corporate Bond Indices") are products of S&P Dow Jones Indices LLC or its affiliates or licensors ("S&P DJI") and have been licensed for use by Cboe Exchange, Inc. iBoxx®, S&P®, "S&P 500® and "Dividend Aristocrats® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by Cboe Exchange, Inc. Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index futures and options on futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index futures and options on futures are not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the iBoxx iShares $ Corporate Bond Indices.
The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the "Indexes"), futures contracts on the Indexes and options on futures contracts on the Indexes ("Contracts") are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, "BlackRock"). BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG, LQD or any subset of fixed income securities.
BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise the Indexes ("Underlying Data"). BlackRock is not responsible for and has not participated in the determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or in the determination or calculation of the equation by which the Contracts are to be converted into cash (if applicable). BlackRock has no obligation or liability in connection with the administration or trading of the Contracts. BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto.
BlackRock makes no warranty, express or implied, as to results to be obtained by S&P DJI, the parties to the Contracts or any other person with respect to the use of the Underlying Data or any data included therein. BlackRock makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Data or any data included therein. Without limiting any of the foregoing, in no event shall BlackRock have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) resulting from the use of the Underlying Data or any data included therein, even if notified of the possibility of such damages.
iShares® is a registered trademark of BlackRock Fund Advisors and its affiliates.
Cautionary Statements Regarding Forward-Looking Information
Certain information contained in this press release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.
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SOURCE Cboe Global Markets, Inc.
