The Volatility Exchange

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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]

Products and Services

  • VolContracts[4]
  • 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. Volatility Index Description. Volatility Exchange.