The new options contract follows the introduction of trading in CBOE Emerging Markets ETF Volatility Index security futures (futures symbol:VXEM) at CBOE Futures Exchange (CFE) on January 9, 2012. Investors can use either or both products to hedge emerging markets volatility exposure or to make direct plays on emerging markets volatility.
CBOE Emerging Markets ETF Volatility Index options and security futures are the first of several ETF-based volatility index products planned for launch at CBOE and CFE in 2012.
The calculation of the CBOE Emerging Markets ETF Volatility Index is based on the well-known CBOE Volatility Index® (VIX®) methodology applied to options on the iShares MSCI Emerging Markets Index Fund (stock symbol: EEM), the eleventh most actively traded ETF option at CBOE in 2011. The CBOE Emerging Markets ETF Volatility Index is an up-to-the-minute market estimate of the expected 30-day volatility of EEM, calculated using real-time bid/ask quotes of EEM options that are listed on CBOE.
Calculated and distributed by CBOE since March 2011, the CBOE Emerging Markets ETF Volatility Index is one in a series of ETF volatility benchmarks created by CBOE. CBOE also calculates and disseminates the following ETF volatility benchmarks: CBOE Crude Oil ETF Volatility Index (OVX); CBOE China ETF Volatility Index (VXFXI); CBOE Brazil ETF Volatility Index (VXEWZ); CBOE Gold Miners ETF Volatility Index (VXGDX); CBOE Silver ETF Volatility Index (VXSLV); CBOE Energy Sector ETF Volatility Index (VXXLE); CBOE EuroCurrency ETF Volatility Index (EVZ); and CBOE Gold ETF Volatility Index (GVZ).
Group One Trading, L.P., has been named the Designated Primary Market Maker (DPM) in VXEEM options.
For more information on CBOE Emerging Markets ETF Volatility Index options and futures, see http://www.cboe.com/VXEEM.
CBOE, known as the home of volatility indexes, currently publishes data on two dozen volatility-related benchmarks and strategies. In 2011, CBOE added 12 volatility benchmark indexes and one volatility strategy index.
CBOE Holdings, Inc. (NASDAQ: CBOE) is the holding company for Chicago Board Options Exchange (CBOE), C2 Options Exchange (C2), CBOE Futures Exchange (CFE) and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE’s Hybrid Trading System incorporates electronic and open-outcry trading and is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports the C2 Options Exchange (C2), CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and www.cboe.com, named “Best of the Web” for options information and education.
CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the OCC.
CBOE®, Chicago Board Options Exchange®, CBSX®, CBOE Stock Exchange®, CFE®, CBOEdirect®, FLEX®, Hybrid®, LEAPS®, CBOE Volatility Index® and VIX® are registered trademarks, and BXM(SM), EVZ(SM), GVZ(SM), OVX(SM), SPX(SM), CBOE Futures Exchange(SM) and The Options Institute(SM) are service marks of Chicago Board Options Exchange, Incorporated (CBOE). C2(SM), C2 Options Exchange(SM) and SPXpm(SM) are service marks of C2 Options Exchange, Incorporated (C2). 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. All other trademarks and service marks are the property of their respective owners.
SOURCE Chicago Board Options Exchange
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