Gold VIX (GVZ) Futures

As CBOE announced earlier the launch of futures on GVZ for this Friday - March 25th, however recently CFE issued a memo about extending the deadline for LMM program for futures until May 2nd. I assume that not many, or most likely no one stepped up to the LMM role because of the previous failures of volatility products like Russell,Dow, and Nasdaq volatility futures, as well as failure of CME to attract liquidity to their GVX Gold VIX futures. However I don't think that the launch of futures will be postponed until later date. Unfortunately, there's probably won't be any liquidity in the contracts until someone steps up into LMM role.

According to CFE 5 contracts will be listed:

Symbol	Last Trading Day	Expiration Day
GV K1	MAY 17 2011	MAY 18 2011
GV M1	JUN 14 2011	JUN 15 2011
GV N1	JUL 19 2011	JUL 20 2011
GV Q1	AUG 16 2011	AUG 17 2011
GV U1	SEP 20 2011	SEP 21 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.