CBOE RMC Europe Recap
CBOE wrapped up its 5th annual Risk Management Conference (RMC) last week in County Wicklow, Ireland. During the conference, CBOE’s Senior Vice President, Business Development, Andy Lowenthal, and Vice President of Research, Bill Speth sat down to discuss product development, extended-trading hours, and options education with EQ Derivatives. For more information on RMC, including blogs recapping presentations, visit http://www.cboermc.com/.
“Q&A: CBOE’s Andy Lowenthal and Bill Speth Discuss Product Development & ETH” – Georgia Reynolds and Robert McGlinchey, EQ Derivatives
Other RMC Articles:
“Equity Allocations, Options Key for Challenged Pensions, Endowments” -- Georgia Reynolds and Robert McGlinchey, EQ Derivatives
“Hybrids Turn Off Some Institutional Investors” -- Georgia Reynolds and Robert McGlinchey, EQ Derivatives
Two weeks ago, CurveGlobal, a new venue for trading European interest rate futures, backed by the London Stock Exchange Group, CBOE and several major dealer banks, opened its doors to investors and immediately began making headway in the market. Trading over 500 lots on its opening day, Monday, September 26th, the exchanges’ volume continued to rise throughout this week, topping 1,500 lots traded and 2,000 lots of open interest on Monday, October 3. CurveGlobal is pushing full speed ahead.
“LSE’s Curve Passes OI, Trading Milestones” – Luke Jeffs, FOW
Pension Funds Put Pileup
Pension Funds are increasingly beginning to use the award winning CBOE S&P 500 PutWrite Index (PUT) as an instrument for volatility protection and income enhancement. Most recently, the Hawaii Employees Retirement System, South Carolina Retirement System Investment Commission and the Illinois State Universities Retirement System each began using the strategy in their allocations.
The PutWrite strategy is designed to sell a sequence of one-month, at-the money, S&P 500 Index (SPX) puts and invest cash at one- and three-month Treasury Bill rates.
For more information on the PutWrite Index, visit http://www.cboe.com/micro/put/.
“Funds Go Exotic with Put-Write Options to Stem Volatility” – Rick Baert, Pensions & Investments
VIX FIX: Volatility’s R&R
Volatility has once again subsided, giving investors a bit of rest and relaxation, or so it seems. With lack of any catalyst, major market indicators are virtually unchanged, while the CBOE Volatility Index (VIX Index) is slightly lower on the week, landing just north of the 13 level at Friday’s close. But with the U.S. Presidential Election less than a month away, and the case for a December rate hike appearing more likely, volatility may rapidly rise.
“A Guide to Hedging the Election” – Steve Sosnick, Barron’s
“The Latest Hot Trade: Volatility” – Ben Eisen, Wall Street Journal
“VIX Fear Index Challenges Prevailing Calm on Wall Street” – Economic Calendar
“The Chart of the VIX Could Signal the Calm Before the Storm” – Timothy Collins, The Street
“Volatility Update: 3rd Quarter Winners and Losers” – Frederic Ruffy, The Ticker Tape