The Volatility Exchange

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CboeLogo.jpg
The Volatility Exchange
VolX.jpg
Key People Robert Krause, CEO & Chairman; Louis Burke, President; Donald Schlesinger, Chief Strategy Officer & Vice Chairman of the Board; Wendy Robinson, General Counsel & Treasurer
Products Volatility Contracts
Website www.volx.us

The Volatility Exchange is a venture established by founder, Chairman, and CEO Robert P. Krause, to create and list contracts settling to the realized volatility exhibited in the market, as opposed to existing volatility products such as CBOE's VIX products, which reflect the implied volatility in the market. The company plans to file for Designated Contract Market status with the CFTC.

In addition to VolContracts, VolX owns the trademark and plans to list VolShares, stock-like instruments based on realized volatility. Future plans include VolSwaps, centrally cleared and standardized OTC derivatives, also settling to realized volatility.[1]

History

VolContracts were developed by VolX in 2000, in order to fill an anticipated need for risk management not fully met by implied volatility products. In 2008, the U.S. Patent and Trademark Office granted the patent for what would become VolContracts.[2]

In November of 2010, VolX entered a licensing agreement with CME Group to list FX VolContracts based on the futures contracts on CME's major currency pairs. The first FX VolContracts, based on 1- and 3- month realized volatility of CME's Euro FX futures, began trading on February 7, 2011[3] but they were delisted on April 14, 2014.

On February 10, 2015 BOX Options Exchange and The VolX Group announced an exclusive licensing agreement in which BOX will list RealVol SPY Options (VOLS) for trading, pending SEC approval. VOLS will be the first exchange-traded options based on the realized volatility of the broad U.S. equity market. VOLS offer direct exposure to the realized daily volatility exhibited by the SPDR S&P 500 ETF (symbol SPY). Currently, the majority of market participants are not able to trade, or hedge against, actual price risk of realized volatility directly. This type of risk-control tool has been offered only to large institutions in the over-the-counter volatility swaps marketplace.[4]

Products and Services

  • VolContracts[5]
  • VolX Indices
  • VolX Series

Key People

References

  1. Volatility Index Description. Volatility Exchange.
  2. Who We Are. The Volatility Exchange.
  3. Structure Chart. The Volatility Exchange.
  4. Box to Launch Realized Volatility Options on VolX Patented Concept. VolX.
  5. Volatility Index Description. Volatility Exchange.