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On August 10, 2011 by the end of the main trading session on FORTS the maximum trading volume in futures contract on the Russian Volatility Index was seen since the launch of trading in this instrument on June 1, 2011.
By 6.45pm MSK market participants executed over 500 trades in the futures to the value of 5,935 contracts or USD5,182,638 (RUB152,046,698).
A volatility index futures contract is the most volatile instrument all over the world, due to the fact that its movements are inversely proportional to the index’s dynamics. By using this feature both active participants and portfolio managers are able to balance their portfolios and hedge against market risks.
"The appeal of this instrument for trading participants is fully reasonable now, during the period of the raised volatility level on the market. It is the right moment to use the unique features of this futures. Market participants gained additional opportunities to earn and hedge against a sharp downfall in the market and a rapid volatility growth because of the timely introduction of the futures contract to trading", said Evgeny Serdyukov, Derivatives Market Director at RTS Stock Exchange.
