CHICAGO, May 17, 2012 /PRNewswire/ -- CBOE Futures Exchange, LLC (CFE) announced today that it plans to launch trading on the CBOE NASDAQ-100 Volatility Index futures contract (ticker symbol VXN, futures symbol VN) beginning on Wednesday, May 23, pending regulatory approval.
VXN, which measures the volatility of the NASDAQ-100 Index, is calculated through the application of CBOE's VIX® methodology to the prices of options on NDX.
The NASDAQ-100 Index represents the largest non-financial U.S. and international securities listed on The NASDAQ Stock Market®, based on market capitalization. As of May 15, 2012, 63.76 percent of the Index securities were classified as technology.
"Our customers are seeking ways to trade and better hedge the dynamic volatility in the technology sector, which continues to be sparked by fierce competition and the rapid pace of innovation. VXN enables investors and traders to measure and benchmark volatility in the NASDAQ-100 Index, the world's premier tech-weighted broad-based index. We are now pleased to offer VXN futures, which will allow customers to hedge, diversify or take a directional view on volatility in this active market sector," said CBOE Holdings President and COO Edward T. Tilly.
John Jacobs, NASDAQ OMX Executive Vice President commented, "Trading in the CBOE NASDAQ-100 Volatility Index futures will further enhance the liquidity of the industry-leading securities which comprise the NASDAQ-100 Index. These futures reflect not only the popularity of the NASDAQ-100 Index, but the CBOE's commitment to innovation and broadening the adoption of this important benchmark."
Barclays will act as a liquidity provider in CBOE NASDAQ-100 Volatility Index futures.
VXN futures is the most recent addition to a series of CFE volatility index futures contracts launched this year: CBOE Crude Oil ETF Volatility Index security futures (OVX) began trading on April 10, CBOE Brazil ETF Volatility Index security futures (VXEW) began trading on February 21 and CBOE Emerging Markets ETF Volatility Index security futures (VXEM) began trading on January 9.
For more information on CBOE NASDAQ-100 Volatility Index futures, see www.cboe.com/VXN. See www.cboe.com/volatility for more information on all CBOE volatility indexes.
CFE currently offers futures on nine different contracts, including: the CBOE Volatility Index (the VIX Index), Weekly Options on Mini VIX futures (VOW), CBOE Mini-VIX (VM), CBOE Gold ETF Volatility Index (GVZ), CBOE Crude Oil ETF Volatility Index (OVX), CBOE Emerging Markets ETF Volatility Index (VXEM), CBOE Brazil ETF Volatility Index (VXEW), CBOE S&P 500 3-Month Variance (VT) and Radar Logic 25-Metropolitan Statistical Area (MSA) RPX Composite Index (RPXCP).
CFE, a wholly-owned subsidiary of CBOE Holdings, Inc. (NASDAQ: CBOE), offers an all-electronic, open-access market model, with traders providing liquidity and making markets. CFE is regulated by the Commodity Futures Trading Commission (CFTC), and all trades are cleared by the OCC. More information on CFE and its products, including contract specifications, can be found at: http://cfe.cboe.com/.
CBOE®, Chicago Board Options Exchange®, CFE®, CBOE Volatility Index® and VIX® are registered trademarks, and CBOE Futures Exchange(SM), GVZ(SM), OVX(SM), VMSM, VT(SM), VOW(SM), VXEM(SM), VXEW(SM), VXN(SM) and Weeklys(SM) are servicemarks of Chicago Board Options Exchange, Incorporated (CBOE). Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC, and have been licensed for use by CBOE and CFE. The NASDAQ-100 Index®, NASDAQ-100®, and NASDAQ® are trademark or service marks of The NASDAQ Stock
Market, Inc. (with which its affiliates are the "Corporations"). These marks are licensed for use by CBOE in connection with the trading of products based on the NASDAQ-100 Index. The products have not been passed on by the Corporations as to their legality or suitability. The products are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S). All other trademarks and servicemarks are the property of their respective owners.
SOURCE CBOE Futures Exchange, LLC