06 September 2012

CBOE Futures Exchange (CFE) plans to establish a London hub next year

Chicago and County Wicklow, Ireland - 06 September 2012 (PRNewswire) - CBOE Futures Exchange, LLC (CFE) plans to expand trading hours for CBOE Volatility Index (VIX Index) futures to virtually 24 hours from eight hours beginning sometime in 2013, CBOE Holdings Chairman and CEO William J. Brodsky announced today at the CBOE Risk Management Conference Europe near Dublin, Ireland. VIX Index futures will be the first contract traded on a CBOE Holdings exchange with around-the-clock access, five days a week, pending regulatory approval.

CFE also plans to establish a London hub next year, with CFE network equipment housed in a London data center. The hub will provide European firms with a cost-efficient way to send and receive CFE data and to execute trades on the exchange. 

"Our customers have access to the most comprehensive array of volatility products in the world, and we continually work to create new, more flexible ways for them to trade these products. Around-the-clock hours for VIX Index futures and a CFE London hub offer the ultimate in flexibility," Brodsky said. 

Though CFE has not yet established a launch date for the new VIX Index futures hours, the exchange's technology team is currently working to put the new hours in place. "We are fortunate that CBOE Command, our state-of-the-art trade engine technology, was developed totally in house. Because we control our own technology, we can program our systems to adapt to different product types and market models, upgrade capacity requirements — and now, institute substantially expanded VIX Index futures hours -- to accommodate our customers," Brodsky told RMC attendees. 

CFE currently offers nine contracts: CBOE Volatility Index (The VIX Index) futures (VX), Mini-VIX futures (VM), CBOE Nasdaq-100 Volatility Index (VXN) futures (VN), CBOE Gold ETF Volatility Index (GVZ) security futures (GV), CBOE Crude Oil ETF Volatility Index (OVX) security futures (OV), CBOE Emerging Markets ETF Volatility Index (VXEEM) security futures (VXEM), CBOE Brazil ETF Volatility Index (VXEWZ) security futures (VXEW), CBOE S&P 500 3-Month Variance futures (VT), and Radar Logic 25-Metropolitan Statistical Area (MSA) RPX Composite Index futures (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. 

Source: CBOE Futures Exchange, LLC