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.
Strong Volume for SPXW Options with Monday, Wednesday, Friday and Month-End Expirations
The large-sized SPXW S&P 500 options with p.m. settlement saw strong trading volume in the month of June, seeing an average daily volume (ADV) of 600,000 contracts.
ADV for SPXW options in June was 77,069 for the Monday expirations, 107,986 for mid-week expirations, and 267,955 for Friday expirations.
On May 1, 2017, CBOE changed the symbol for existing SPXPM options series to option symbol SPXW. For the July 21 expiration date, CBOE is offering both SPX options with a.m.-settlement and SPXW options with p.m.-settlement.
For more information, see the CBOE Options Blog.
Million Milestone Mark
On Thursday, CurveGlobal, an interest rate derivatives platform backed by LSEG, CBOE and several investments banks, surpassed one million contracts traded since its September launch.
“LSE’s Curve Hits One Million Lots Since Launch” – Luke Jeffs, FOW
“CurveGlobal to Hit a Million Contracts” – Helen Bartholomew, International Financing Review
VIX Fix: Volatility’s Geopolitical Resistance
Investors once again shrugged off a fresh round of geopolitical events this week, opting to focus on market fundamentals, sending major market indicators higher. Following congressional testimony by Fed Chair Janet Yellen, markets soared on the promise of gradual interest rate hikes and a reduction in the U.S balance sheet, triggering three back-to-back record closings in the Dow Jones Industrial (DOW) average. After a brief pop earlier in the week, the CBOE Volatility Index (VIX) subsided on the economic news, hovering just below the 10 level. So as markets continue to reach new records highs, many investors are wondering how low volatility can actually go.
“Beware the Black Swan” – Steven Sears, Barron’s
“Volatility Flickers Back to Live in Financial Markets” – Robin Wigglesworth, Financial Times
“Get Your Volatility Signals Right” – Aaron Brown, Bloomberg
“Money Managers Question if Trend to Passive Investment is Lowering Volatility” - Sophie Baker, Pensions and Investments
“Volatility Index Could Double in the Next 12 Months, Says Natixis” – Cormac Mullen, Bloomberg