During January, trading in futures on the CBOE Volatility Index (VIX) reached new highs, setting three new records. Volume for the month of January totaled 21,502 contracts, eclipsing the previous record of 17,111 contracts in May 2005.Open interest in VIX futures stood at 19,476 contracts at month's end, also a new all-time high. On Tuesday, January 31st, a new record for single day volume in VIX futures was set as 4,604 contracts traded at CFE.
Additionally in January, CFE established a new record for total Exchange open interest. At the end of the month, total CFE open interest climbed to a new high of 21,510 contracts, surpassing the previous high in open interest of 18,634 contracts on November 14, 2005.
"January's record setting days and the fact that CFE broke the 20,000 contract level in open interest for the first time are significant benchmarks for VIX futures at the CBOE Futures Exchange," commented Patrick Fay, Managing Director, CBOE Futures Exchange. "VIX futures are becoming more popular with investors as liquidity in the market continues to build impressively. VIX futures provide a great vehicle for trading volatility and they are a convenient, easy tool for hedging volatility exposure in S&P 500 Index related positions."
CFE offers futures on 25 different contracts, including: the CBOE Volatility Index, CBOE S&P 500 Three-Month Variance, CBOE DJIA Volatility Index, CBOE China Index, full and mini-size Russell 1000 Index, Mini-Russell 2000 Index, (12) "PowerPacks" sector indexes, and (6) "Gas at the Pump" contracts.
CFE, launched in March 2004, is a wholly-owned subsidiary of Chicago Board Options Exchange, Incorporated, offering an all-electronic, open access market model, with traders providing liquidity and making markets. CFE, the newest futures exchange in the world, is regulated by the Commodity Futures Trading Commission (CFTC), and its trades are cleared by the triple-A rated Options Clearing Corporation (OCC). More information on CFE and its products, including contract specifications, can be found at: http://www.cboe.com/CFE.
