Cboe has reported a strong start for its new Mini VIX futures, which began trading on the Cboe Futures Exchange (CFE) on Sunday evening, 9 August. Trading volume in Mini VIX futures totalled nearly 127,000 contracts during the first week. The launch was off to a strong start, with more than 25,000 total contracts traded on Monday, 10 August and trading continued to be active throughout the week, reaching a high mark of more than 32,000 total contracts on Friday, 14 August.
Approximately 23,000 contracts, or 18 per cent of total volume traded in the week, occurred during CFE’s global extended trading hours.
Cboe says increased volatility in 2020 is amplifying interest in the VIX Index and related products, driving demand for volatility management tools. In particular, the exchange says it has seen a growing trend among investors, who are increasingly seeking small-sized contracts with a smaller notional value, such as the Mini VIX futures, for derivatives trading. The Mini VIX futures’ contract size provides investors additional flexibility and precision in volatility risk management.