CBOE Futures Exchange (CFE) Open Interest Sets New Record - Open Interest And Volume Surge On Volatility Trade

The CBOE Futures Exchange, LLC (CFE) announced today that total exchange open interest reached a new high mark, with 45,549 contracts outstanding at the end of trading on Thursday, July 13th. Open interest and volume at CFE has been driven primarily by a surge in trading in both the CBOE Volatility Index (VIX) and CBOE DJIA Volatility Index (VXD) futures. CFE also lists Variance futures.

"We are extremely pleased by the increase not only in volume and open interest, but the increase in the number of customers using these products. More and more investors are realizing the critical impact that volatility has on their portfolios, and they are quickly learning how to hedge that exposure with CFE Volatility futures," said Patrick Fay, CFE Managing Director. "As VIX is the benchmark of market volatility, we would expect to see volume surge as we seem to be entering a much more volatile market phase."

So far in July volume in VIX futures has averaged 2,275 contracts per day, with total month-to-date volume of 18,193 contracts.Volume in VXD futures has averaged 238 contracts per day, with month-to-date volume of 1,899 contracts. Open interest in VIX futures stood at 42,864 contracts on Friday morning, and VXD open interest was 1,671 contracts. Open interest is the number of contracts outstanding, or positions that remain open.

CFE offers futures on six different contracts, including: the CBOE Volatility Index, CBOE S&P 500 Three-Month and Twelve-Month Variance, CBOE DJIA Volatility Index, CBOE China Index, and six "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 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