The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets.
Making Waves Across the Pond
Last week, CBOE announced it has taken a minority stake in CurveGlobal, a new interest rate trading venue, backed by the London Stock Exchange Group, CBOE and major dealer banks. CurveGlobal will aim to provide customers in that space with a compelling trading alternative that offers new and competing interest rate products, increased trading efficiencies and reduced transaction costs.
“LSEG Launches New Derivatives Venture – CurveGlobal” – Automated Trader
“LSE Group Launches Interest Rate Derivatives Joint Venture” – Daily FT
New Russell Indexes Debuted This Week
On Tuesday, CBOE launched new cash-settled options on three indexes: the Russell 1000 Index (RUI), the Russell1000 Growth Index (RLG) and the Russell 1000 Value Index (RLV). These indexes offer key advantages to investors with their large contract size, European-styled exercise and cash settlement.
“New Cash-Settled Options on Russell 100 Indexes – Large-Cap, Growth and Value” – Matt Moran, CBOE Options Hub
“CBOE Launches New Cash-Settled Options on Russell 1000 Indexes” – Maria Nikolova, Leap Rate
Where’s the Small-Cap Vol?
"We are in an unusually calm period for U.S. small-cap volatility. In addition to the current CBOE Russell 2000 Volatility Index (RVX) level being low relative to the long term history of the Index, low volatility in October is anything but the norm. In fact when considering the monthly average close, October has the highest average close for RVX.”
“All-Night News Cycle Turns Up the Stress on U.S. Megacap Stocks” – Dani Burger, Bloomberg
“Amid October Rally, Small-Cap Volatility Wanes” – Todd Shriber, Benzinga
Stocks are making a comeback as volatility in markets continues to dissipate, with the VIX Index hovering around the 15 level this week, well below its historical average of 20 and significantly below August, when intraday spikes touched 50. Is this signaling less turbulence ahead? Has volatility packed its bags and already begun hibernating for the winter?
“Is the Volatility Spike Already Over?”- Alex Rosenberg, CNBC
“Storm Subsiding in Global Markets Amid 3-Week Drop in Volatility” – Joseph Ciolli, Bloomberg
“The VIX Declined Unusually Fast, A Worry for MKM Partners” – Chris Dieterich, Barron’s
“When VIX ‘Disconnects’ From Futures: Tin Foil Hat Edition” – Adam Warner, Schaeffer’s Investment Research
“Stupid Spread Sold As Investor Targets Lower VIX” – Ryan Sachetta, EQ Derivatives