CHICAGO, Dec. 3, 2012 /PRNewswire/ -- CBOE Futures
Exchange, LLC (CFE) announced today that it plans to launch trading
in S&P 500 Variance futures on Monday,
December 10.
(Logo:
http://photos.prnewswire.com/prnh/20100707/CBOELOGO-b)
The S&P 500 Variance futures contract, like over-the-counter
(OTC) variance swaps, allows users to trade the difference between
the implied and realized variance of the S&P 500 Index. CFE's
variance futures contract will offer the same quoting conventions
and economic performance of OTC variance swaps and will provide the
advantages of exchange-traded contracts -- transparency, price
discovery and counterparty clearing guarantees.
The new S&P 500 Variance futures contract is designed to
offer benefits to both existing OTC users and to customers who have
not traditionally participated in the OTC variance swap market.
"The S&P 500 Variance futures contract is our latest effort
to attract over-the-counter participants to our marketplace by
customizing our proprietary products and services to fit their
needs," CBOE Holdings President and COO Edward T. Tilly said. "We're seeing OTC market
participants increasingly look to exchange-traded products to
mitigate risk, and S&P 500 Variance futures will be an
appealing addition to our line of OTC-like products."
CFE will also begin a Lead Market Maker Program (LMM) for
S&P 500 Variance futures, and an affiliate of DRW Trading Group
has been approved as an LMM. DRW Trading Group is a principal
trading organization that trades across a wide range of asset
classes for its own account.
For more information on S&P 500 Variance futures:
www.cfe.cboe.com/Products/Products_VA.aspx.
About CBOE Futures Exchange:
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. More
information on CFE and its products, including contract
specifications, can be found at: http://cfe.cboe.com/.
CBOE-EF
CBOE®, Chicago Board Options
Exchange®, CFE®, CBOE Volatility Index® and VIX® are registered
trademarks, and CBOE Futures ExchangeSM, CBOE Brazil ETF
Volatility IndexSM, VXEWSM, CBOE Crude Oil
ETF Volatility IndexSM, OVXSM, CBOE Emerging
Markets ETF Volatility IndexSM, VXEMSM, CBOE
Emerging Market Brazil ETF IndexSM, VXEWSM,
GVZSM, VOWSM and WeeklysSM 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