Feb 28, 2011

CBOE to launch Gold VIX Futures and options, piss off CME

CBOE announced today that they are launching derivatives on GVZ - Gold VIX index that is based on implied volatility of GLD ETF. What is surprising that only half of a year ago CBOE licensed to CME the right to develop their own volatility indexes (crude, and gold - GVX based on implied volatility of GC futures options), and CME did already launch futures and options on them. While as far as I know there has been no trading activity in these two products on CME (ok, gold futures traded a 4-lot, options none, oil none for both futures and options) it is really a surprising move for CBOE to move directly into CME space, and also to try to revive a dead product. I would love to see this product gain liquidity, but experience suggests that the product is likely to fail.

Futures contracts specs, options contracts specs - all in parallel to the VIX contracts.

See my previous posts about CME indexes here, and here.

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