Sep 21, 2010

Crude Oil & Gold Volatility Futures to Trade on CME

After announcing new commodity volatility indexes back in March, CME announced they're actually launching futures and options on NYMEX WTI and COMEX Gold volatility in the fourth quarter. This is to be followed by launching volatility derivatives on Soybeans and Corn in the first quarter of next year.

There is no exact schedule of product launch - whether CME will launch futures first, and then introduce options, or launch futures and option simultaneously. I hope that the new products will succeed, although I have my reservation given many failures in volatility derivatives. What makes these contracts different is that GVX and OIV would be the first commodity volatility derivatives to be listed.

CME product webpage here, including historical data for all new indexes. Press release here.

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