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.
“CBOE is a Products Company”
Building off of a successful 2014, CBOE looks to continue expanding its volatility and index product lines in the coming year. CBOE has tapped into the interest rate and foreign exchange spaces with new volatility indexes, while it recently announced a tie-up with MSCI Indexes, adding new products that provide global exposure.
“Livin’ the High Life: CBOE Posts Solid 2014, Looks to Global Growth in 2015” – Sarah Rudolph, John Lothian News
“CBOE Expands Index Options, Volatility Suite” – Steve Marlin, Markets Media
“Volatility Futures Planned For U.S. Listed MSCI Options” – Daniel O’Leary, EQDerivatives
New White Paper on Fund Use of Options
On Tuesday, CBOE released a groundbreaking new study — “Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs.” The study analyzed SEC-regulated investment companies and closed-end funds that focus on use of exchange-listed options for portfolio management. Executive summary: use of options-based funds is on the rise.
“Can Options-Based Funds Compete?” – Jim Kharouf, John Lothian News
“Equity Option Funds Outperform S&P with Lower Risk: CBOE” – Daniel O’Leary, EQDerivatives
After a lull in volume during the month of November, December roared back to life with robust volume, providing a finishing kick to the year. 2014 goes down as the second highest trading volume all-time.
“Listed Options Volume Up 20 Percent at 355 Million Contracts in December” – John D’Antona Jr.
“Options Liquidity Matrix” – Tabb Forum
Playing Interest Rate Volatility
“People aren’t going to insure their portfolios unless they feel that there is legitimate risk out there. So we need some help from Janet Yellen.”
“A Market Whose Time Has Come? Treasury Vol Futures Set for Hikes” – Beth Shah, Global Capital Review 2014/Outlook 2015
2015 Showing Early Signs of Volatility to Come
2015 is off to a volatile start, with the VIX Index spiking during the first two weeks of the new year. This market has traders wondering if “volatile volatility” will be the new normal.
“The Year of a Volatile VIX?” – Steven M. Sears, Barron’s
“Traders Prepare for Stock Volatility” – Saumya Vaishampayan, The Wall Street Journal
“Fear Gauge Spikes, Amid Talk of ‘Old Normal’ for Stock Market” – Kristen Scholer, The Wall Street Journal
“As VIX Flares, Europe Likely to Conduct Symphony of Volatility” – Chris Dieterich, Barron’s
Seal Of Approval
CBOE recently enhanced its VIX Index methodology to include SPX Weeklys into the VIX Index calculation, allowing the VIX Index “spot” values to be calculated with S&P 500 Index option series that more precisely match the 30-day target timeframe for expected volatility that the VIX Index is intended to represent.
“One Reason Why the New VIX Calculation Is Better” – Vance Harwood, Seeking Alpha