CBOE Futures Exchange

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CBOE Futures Exchange (CFE)
CFE Logo.jpg
Founded 2004
Headquarters Chicago
Key People Ed Tilly, Chairman; James F. Lubin, Senior Managing Director
Products Futures contracts primarily based on volatility and variance
Website cfe.cboe.com

The fully electronic CBOE Futures Exchange, LLC (CFE), a wholly owned subsidiary of the CBOE Holdings, Inc., opened for trading in 2004, with the vision of offering futures contracts based on “volatility” and on “variance.”

The first CFE futures contract offered in 2004 was based on the CBOE Volatility Index (the VIX Index), a benchmark of market sentiment that reflects investors’ consensus view of expected stock market volatility (the “investor fear gauge”) over the coming 30 days.

As of April 2014, CFE listed 9 futures contracts.

In October and November 2013, CFE launched extended trading hours for VIX futures. On October 28, a 45-minute afternoon trading session was added, and on November 4, an additional 5-hour early morning session was launched to coincide with the start of trading in London.

On March 12, 2014, the chief executive of CBOE Holdings, Ed Tilly, announced that starting on June 22 CFE would expand trading hours for futures on the CBOE Volatility Index (VIX Index) up to 23 hours and 45 minutes a day, five days a week. The VIX currently trades 14 hours a day. The time extension would allow CBOE to capture more trading transactions from Asia. CBOE also plans to expand trading hours for VIX options and options on the S&P 500 Index in 2014.[1]

On May 1, 2015, CBOE Holdings announced plans to list futures and options with weekly expirations on the VIX Index, to be traded at CFE. The VIX Weeklys are expected to begin trading in July 2015.[2]

Full Product Listing (as of April 2014)

All futures on CFE, except VIX Index futures, are traded electronically from 8:30 a.m. - 3:15 p.m. (Chicago time) via CBOE Command and are cleared at the (OCC). Trading hours for VIX futures include hours before and after the regular U.S. index options trading hours.

Full CFE product specifications[3], market data [4], and other educational resources[5] are available on the CFE website.[6]

Regulation

CBOE Futures Exchange is regulated by the Commodity Futures Trading Commission (CFTC).


Key People

Edward Tilly, Chairman of the Board
Edward Provost, President
Jim Lubin, Senior Managing Director
Jay Caauwe, Managing Director
Michael Mollet, Managing Director
David Schulz, Business Development
Jennifer Fortino, Business Development
Karen Christiansen, Chief Regulatory Officer


Awards

Market Activity

  • 2013: For a fourth consecutive year, exchange-wide trading volume at CFE set a new annual record. The 40.2 million contracts traded in 2013 was an increase of 68 percent from the 23.9 million contracts traded in 2012. Average daily volume (ADV) at CFE also reached a new high for a fourth straight year in 2013. The 159,498 contracts per day was 67 percent above the ADV of 95,569 contracts in 2012. Trading volume in VIX futures totaled 39.9 million contracts for the year, a fourth straight annual volume record, and surpassing the 23.8 million contracts traded in 2012 by 68 percent. Average daily volume in VIX futures was 158,508 contracts, also a fourth consecutive annual record, and up 67 percent from 2012.
  • 2012: CFE trading volume for 2012 set a new record with 23.89 million contracts traded, an increase of 98 percent from 12.04 million contracts traded in 2011, the previous annual record. The year 2012 marked the third consecutive year of record exchange-wide trading activity for CFE. Average daily volume (ADV) at CFE also reached a new high for a third straight year in 2012. The 95,571 contracts per day doubled the 47,782 contracts traded per day in 2011. VIX futures volume set a new record with 23.79 million contracts traded, an increase of 98 percent from the 12.03 million contracts traded in 2011, which stood as the previous annual record. VIX futures ADV for 2012 was 95,143 contracts, also a third consecutive annual record. ADV was up 100 percent from the 47,730 contracts traded per day in 2011, the previous high mark. Also during 2012, VIX futures open interest set numerous records, the highest at 469,000 contracts on December 13.
  • 2011: CFE trading volume achieved a new all-time high of 12 million contracts in 2011, surpassing the 4.4 million contracts traded in 2010 by 174 percent. CFE’s record trading activity was propelled by robust volume in CFE’s flagship product, futures on the CBOE Volatility Index (VIX).

References

  1. CBOE plans nearly non-stop VIX futures trading this year -CEO. Reuters.
  2. CBOE Holdings to List VIX "Weeklys" Futures And Options. CBOE via PR Newswire.
  3. Product Specifications. CBOE Futures Exchange.
  4. Market Data. CBOE Futures Exchange.
  5. Educational resources. CBOE Futures Exchange.
  6. CFE home page. CBOE Futures Exchange.