"We are extremely pleased to offer this exciting new product. The Dow Jones Industrial Average is one of the most recognized and widely followed benchmark indexes in the world, so naturally there has been tremendous customer interest in a Dow-based volatility product," said CBOE Chairman and CEO William J. Brodsky. "By working together, CBOE and Dow Jones have created an important new product that will enable portfolio managers and investors of all sizes to manage volatility risk of a Dow portfolio."
"The Dow Jones Industrial Average is an excellent tool to measure the performance of the U.S. market. By launching the first product based on a Dow-based volatility index, the CBOE demonstrates their market leadership and takes an innovative step in offering their members and customers exposure to U.S. blue chip companies and the opportunity to react to market expectations of near-term volatility," said Michael A. Petronella, president of Dow Jones Indexes/Ventures.
"CFE is proud to add VXD futures to its growing family of Volatility and Variance products. Today's money managers, large and small, recognize the importance of volatility-both as a profit opportunity and as a risk factor. CFE's Volatility products are designed to enable all investors to manage that risk, and to take advantage of volatility trading opportunities," said CFE Managing Director Patrick Fay.
The CBOE DJIA Volatility Index (ticker symbol VXD) is designed to reflect investors' consensus view of expected volatility over the next 30 days in the Dow Jones Industrial Average, and as such, can be used as a benchmark of investor sentiment. VXD is calculated from prices of near-term Options on the Dow (DJX) traded at the CBOE. For more information on methodology, historical data and charts for VXD, please visit http://www.cboe.com/IndexSites
Futures on the CBOE DJIA Volatility Index (futures ticker symbol DV) will expand the menu of tradable volatility indexes at CFE, providing investors a direct means to trade the volatility of the DJIA.DV futures will trade in CFE's all-electronic, open access market model, with dedicated liquidity providers making markets. DV futures offer the benefits of a standardized, exchange-traded volatility contract, cleared through the triple-A rated Options Clearing Corporation (OCC). The CBOE Futures Exchange, the newest futures exchange in the world, is a wholly-owned subsidiary of Chicago Board Options Exchange, Incorporated, and is regulated by the Commodity Futures Trading Commission (CFTC). More information on CFE and its products, including contract specifications, can be found at: http://www.cboe.com/CFE
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at: http://www.cboe.com/.
