The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets.
Futures on the Interest Rate VIX
One week ago, CBOE Futures Exchange launched trading of futures on the CBOE/CBOT 10-year U.S. Treasury Note Volatility Index. Futures on the VXTYN Index provide investors the ability to hedge against swings in the interest rate market.
“CBOE Breathes Life into Treasury VIX – Chris Dieterich, Barron’s
Anticipated Record Options Volume
Although options volumes have cooled in November, last month’s 22% increase in trading boosted total options volume to a 4% gain year-to-date. This increase puts 2014 on track to be the 2nd busiest year all time.
“Volume Approaches Record Year as October Disrupts Calm” – Lu Wang, Bloomberg Businessweek
“Tabb Group Says U.S. Equity Volume Up 29% in October to 7.8B Shares” – John D’Antona Jr., Traders Magazine
“Industry Volume Spikes to Highest Level in Three Years” – Valerie Bogard, Tabb Forum
All Calm on the Western Front
With the volatile month of October behind us, the CBOE Volatility Index and other market indicators have subsided. Will stocks remain calm for the remainder of the year?
VIDEO: “Volatility 411” on CBOE TV – Jamie Tyrrell, Group One Trading
“Volatility Update: Top-Heavy Markets Beg the Question – Too Calm Right Now?” – JJ Kinahan, Forbes
“Pick-up in Volatility Elsewhere Even as VIX Slumbers” – Jamie Chisholm, Financial Times
“Why No One Ever Forecasts Lower Volatility” – Adam Warner, Schaeffer’s Investment Research
“Are Options Underpricing the Probability of More Upside?”- Adam Warner, Schaeffer’s Investment Research
“Correlation Gauge for S&P 500 Falls at Fastest Rate Ever” – Callie Bost, Bloomberg
“Low Volatility to Continue in 2015” – Markets Media
A Step Forward For VIX Kind
After a three- year hiatus, the Korea Exchange (KRX) has resumed options trading. In addition, futures based on the KOSPI 200 Volatility Index began trading Monday at the bourse.
“S. Korea Resumes Stock Option Trading After Over 3-Year Hiatus” – Kim Eun-jung, Yonhap News Agency (via Global Post)