CBOE made two exciting announcements today to coincide with the 2nd Annual CBOE Risk Management conference being currently held in Portugal.
First the CBOE Futures Exchange plans to extend trading hours for VIX futures trading. The extended hours trading will be rolled out in two phases in October. On October 21st the exchange will offer a 45 minute trading session from 3:30 pm to 4:15 pm Chicago time. The extended session will be offered every Monday through Thursday to allow post-settlement trading opportunities. This extended trading period will mark the beginning of the next trading session. The second phase of extended trading hours for VIX futures will involve opening the market at 2:00 am Chicago time and will commence on October 28th. These extended hours will benefit both US and European customers who are seeking longer hours to trading in VIX futures. European based customers will now have the opportunity to trade VIX futures during their local trading hours with the session starting five hours earlier.
The second announcement is that CBOE and CFE will begin trading options and futures based on the Russell 2000 Volatility Index (RVX). The Russell 2000 is distinguished relative to other equity volatility indexes by a couple of factors. The Russell 2000 is comprised of small and mid-cap companies. This differs from other broad based indexes which are mostly comprised of large cap stocks. Also, as a group, Russell 2000 companies receive a greater portion of revenues domestically than companies that comprise other broad based indexes. The plan is to roll out RVX futures trading on October 30th and then follow up a few weeks later with options trading pending regulatory review.