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.
MSCI Index Options Coming to CBOE
This week, CBOE announced it entered into a licensing agreement with MSCI to offer options trading on several MSCI Indexes. In the U.S., options on the MSCI Indexes will be solely listed for trading on CBOE. Options on the MSCI EAFE Index and MSCI Emerging Markets Index, the first two index options to be listed for trading, are expected to launch in the first quarter of 2015, pending regulatory approval.
“Agreement for New Global Risk Management Products” – Matt Moran, CBOE Options Hub
“CBOE to Offer Options on MSCI Indexes” – Saqib Iqbal Ahmed, Reuters
Asset Managers Use of Index Options on the Rise
A recent study by the TABB Group notes that use of equity-index based derivatives is on the rise among asset managers. Matt Simon, a TABB principal and author of the study noted “if recent volumes during October are any signal of what to expect in 2015, the changes for increased adoption are already taking hold.”
“Asset Managers Turning to Index Derivatives to Mitigate Risk, Says TABB Group” – Leah Cunningham, HedgeWeek
VIX Not Quite Ready for the Holidays
So much for the anticipated quiet markets heading into the holidays… The CBOE Volatility Index (VIX) popped from 13 to 20 this week and the spike from Monday to Thursday was the biggest four-day advance since 2011.
“Skepticism Jumps in Options as VIX Rises 70% in Four Days” – Callie Bost, Joseph Ciolli and Oliver Renick, Bloomberg
“Analyzing the Unexpected VIX-plosion” – Adam Warner, Schaeffer’s Trading Floor Blog
“Fear Indicator Spikes as Traders Get Skittish” – Alex Rosenberg, CNBC.com
Will Volatility Remain “Lower for Longer?”
As the year winds down, we begin to look ahead to 2015. And more specifically…. where is the VIX Index headed???
“Musings of the Oracle of VIX” – Steven Sears, Barron’s
“Rate Hike Unlikely to Impact VIX in 2015” – Daniel O’Leary, EQDerivatives
A Three-Peat for CBOE
CBOE was named “U.S. Options Exchange of the Year” for the third consecutive year at an awards ceremony during Futures and Options World magazine’s Derivatives World London Conference this week. FOW cited CBOE’s continued efforts in new product development, particularly in the volatility space, and its ongoing commitment to investor education.
“CBOE Awarded U.S. Options Exchange of the Year from Futures and Options World for Third Straight Year” – CBOE Press Release