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Opens 34th Annual Cboe Risk Management Conference in Bonita Springs, Florida, with commentary Emphasizes that many customers using VIX products to hedge portfolios were protected by products in early February trading
Ed Tilly, Chairman and CEO of Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq: CBOE), one of the world’s largest exchange holding companies, today commented on recent market volatility and the utility of the Cboe Volatility Index (VIX) in his opening remarks at the 34th annual Cboe Risk Management Conference (RMC) in Bonita Springs, Florida.
On the importance of the VIX Index, Tilly said: “Before Cboe began publishing real-time VIX Index data in 1993, we could only measure volatility in the rear view mirror… There was no uniform standard for how to think about expected volatility. What the VIX Index brought to the market was a way to measure the market’s expectation of future volatility. It was an extraordinary concept that, because of its usefulness, quickly became ordinary.”
Addressing the topic of elevated market volatility in early February, he noted: “What didn’t get attention was that many investors using VIX products to hedge their portfolios were protected by these products, or even profited from them, during the market downturn. Managing market volatility through common derivatives strategies is now an integral part of portfolio protection.”
On the utility of VIX futures and options, he said: “We have evolved from a market that not so long ago was the domain of niche professionals to one that provides investors of every stripe with enhanced means for portfolio protection. Investors all over the world are using VIX options and futures to buffer the effects of geopolitical turmoil, hedge their portfolios against market downturns and many other applications.”
Tilly’s full remarks are available at http://www.cboe.com/RMCRemarks.
Cboe’s RMC series are the premier educational forums for users of equity derivatives, options and volatility products. This year’s U.S. event will include panels and discussions on VIX ETPs; digital assets and the future of finance; artificial intelligence and its uses in options and volatility trading strategies; behavioral finance and a history of the VIX.
Additional information and highlights from Cboe RMC can be found at www.cboermcus.com.
