The CBOE Futures Exchange (CFE) today announced it has launched security futures trading on the CBOE Gold ETF Volatility Index (Ticker - GVZ), further expanding tradable CFE volatility products into a new asset class.
"With the Gold VIX security futures contract, we look forward to bringing the same utility of volatility futures trading available through our CBOE VIX security futures contract, covering the market as a whole, to a new ETF category and new types of investors," Andrew Lowenthal, CFE Managing Director said. "This contract allows investors to diversify and hedge their GLD exposures through a trading vehicle that was not previously available."
The calculation of the CBOE Gold ETF Volatility Index ("Gold VIX") is based on the well-known CBOE VIX methodology applied to options on the SPDR Gold Trust (Ticker - GLD). The Gold VIX is an up-to-the-minute market estimate of the expected 30-day volatility of GLD, calculated using real-time bid/ask quotes of GLD options that are listed on CBOE.
For more information on CBOE Gold ETF Volatility Index futures and options (date of options trading to come), see http://www.cboe.com/GVZ.
In addition to the newly listed CBOE Gold ETF Volatility Index futures contract, CFE currently offers futures on: the CBOE Volatility Index (VIX), Weekly Options on VIX futures (VOW), CBOE Mini-VIX (VM), CBOE S&P 500 3-Month Variance (VT) and CBOE S&P 500 12-Month Variance (VA).
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 trades are cleared by the AAA-rated Options Clearing Corporation (OCC). CBOE Futures Exchange is regulated by the Commodity Futures Trading Commission (CFTC).
More information on CFE and its products, including contract specifications, can be found at: http://cfe.cboe.com/.
