The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.
VIX Futures Hits Its Note
The CBOE Futures Exchange (CFE) announced today that VIX Futures hit a new record during its extended hours trading session following the announcement of a British exit from the European Union. An estimated 235,000 contracts changed hands, surpassing its previous record of 140,811 contracts set in August 2015. VIX futures trade nearly 24 hours a day, five days a week, with the extended trading hour session designed to allow overseas investors access to volatility products in real time as events like “Brexit” unfold. For more information see Press Release.
Once Upon A Time
CBOE has a unique story that sets it apart from other financial exchanges and allows it to remain at the forefront of technological innovation with the creation of new products that give investors the ability to better target hedging activities. There are many chapters to this story and most recently, CBOE partnered with Social Market Analytics (SMA) to create actionable sentiment-based social media analytics for markets measurement. See what happens when CBOE’s Russell Rhoads applies this social sentiment to the Brexit phenomena on the Options Hub.
“CBOE Acts Like A Tech Original Equipment Manufacturer” – Jonathan Salem Baskin, Forbes
“What Is The CBOE” – Dan Caplinger, The Motley Fool
VIX FIX – BREXIT DID IT!!!
Investors were greeted this morning with the historic news that the U.K. voted to leave the European Union, creating a global free fall throughout Markets. The Dow Jones Industrial Average opened approximately 500 points lower; meanwhile, the VIX steadily rose throughout the week in anticipation of more volatile markets, now up 47% on the week. For now, it seems market bears have come roaring out of hibernation.
“VIX ETF Trading Goes Bananas” – Chris Dieterich, Barron’s
“Hedge Funds Are Shorting The VIX Big Time” – Chris Dieterich, Barron’s
“Buckle Up! Volatility Seen Lasting Through Thursday’s Brexit Vote” – Benzinga
“Wall Street’s ‘Fear Gauge’ Rears Up As Brexit Vote Approaches” – Mark DeCambre, Market Watch
“VIX Up. Stocks Swings Down. Investors Expect Trouble Beyond Brexit” – Saumya Vaishampayan
“VIX Shows Traders Are Worried About A Lot More Than ‘Brexit’ – Chris Dieterich, Barron’s
“VIX Tumbles As Brexit Fears Recede” – Chris Dieterich, Barron’s
“VIX Logs Highest Close Since Feb As Brexit Looms” – Financial Times
“What the VIX Is Telling Us About A Post-Brexit Move” – Simon Maierhofer, Market Watch