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.
The Futures of Bitcoins
On Wednesday, CBOE announced that it has entered into an exclusive license agreement with Gemini Trust Company to use Gemini’s bitcoin market data for bitcoin derivatives and indices.
Under the terms of the agreement, CBOE will have a multi-year exclusive global license permitting it to use Gemini’s market data, including Gemini daily bitcoin auction values, in the creation of bitcoin derivatives products for listing and trading. Pending regulatory review1 by the CFTC, cash-settled bitcoin futures are planned to be made available for trading on CFE in the fourth quarter of 2017 or early 2018.
Moreover, CBOE will retain exclusive rights to use Gemini market data for the creation of new indexes, as well as rights to distribute Gemini market data over CBOE’s market data feeds. Additional details can be found in the press release.
“CBOE Teams Up With Winklevoss Twins for Bitcoin Data” – Gunjan Banerji, The Wall Street Journal
“CBOE to Launch Bitcoin Future Contracts” – Philip Stafford, Financial Times
“CBOE Plans to Launch Bitcoin Futures, Announces Agreement with Winklevoss Brothers’ Digital Currency Exchange” – Evelyn Chang, CNBC.com
“CBOE and Gemini Strike Bitcoin Data Agreement” – Helen Bartholomew, International Financing Review
“CBOE to Use Bitcoin Market Data for Derivatives Products” – Georgia Reynolds, EQ Derivatives
“CBOE Cuts Deal With Bitcoin Market Gemini Over Derivatives” – Julie Aelbrecht, Global Investor Group
VIX Fix: Record-Palooza
As music lovers descend on Chicago to attend the popular music fest Lollapalooza, markets are also rocking. Companies continued to report strong corporate earnings this week, causing major market indicators to reach new milestones and “shadoobie, shattered” records. The Dow Jones Industrial Average (DOW) went platinum this week -- crossing the 22,000 mark for the first time in history on Wednesday, after a series of consecutive record closings. A better than expected jobs number added more fuel to the rally, Meanwhile, the volatility song remains the same for investors as the VIX Index hovers at all-time lows between the nine and ten levels(if only we could get VIX to “go to 11”!) So as the sweet sounds of a rising market prevail, volatility is missing out on the party.
“CBOE’s Rhoads on How Low VIX Can Go” – Sumit Roy, ETF.com
“After the VIX Record Low, What’s Next?” – Bernie Schaeffer, Schaeffer’s Investment Research
“The VIX Trade No One Is Talking About!” – Peter Tchir, Forbes
“Traders are Betting Big on a Stock Market Shock – Joe Ciolli, Business Insider
“Are Fear Levels at an All Time Low?” – Nikolai Kuznetsov, Forbes