Cboe Futures Exchange
| Cboe Futures Exchange (CFE) | |
| |
| Founded | 2004 |
|---|---|
| Headquarters | 433 W Van Buren St, Chicago, IL 60607
|
| Key People | Ed Tilly, Chairman |
| 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 Cboe Global Markets, Inc., opened for trading in 2004, offering futures contracts based on volatility and variance. It currently also offers corporate bond index futures.
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.
Trades on CFE are cleared by The Options Clearing Corporation (OCC).[1]
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.
Starting on June 22, 2014, CFE expanded 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 previously traded 14 hours a day. The time extension allowed Cboe to capture more trading transactions from Asia. Cboe also expanded trading hours for VIX options and options on the S&P 500 Index in 2014.[2]
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. VIX Weekly options began trading on Cboe Options Exchange in 2015. [3]
Cboe Futures Exchange began trading futures on bitcoin on December 10, 2017[4] but put that market on hold in March of 2019.[5]
In July 2020, Cboe Global Markets announced plans to launch trading in Mini Cboe VIX futures on CFE beginning Monday, August 10, 2020, subject to regulatory review.
Full Product Listing (as of September 2019)[edit]
- Cboe Volatility Index (VIX Index) Futures (VX)
- Cboe Short-Term Volatility Index Futures (VXST)
- Cboe Mini-VIX Futures (VM)
- Cboe S&P 500 Variance Futures (VA)
- Cboe Russell 2000 Volatility Index (RVX) Futures (VU)
- Cboe NASDAQ-100 Volatility Index Futures (VN)
- Cboe Gold ETF Volatility Index Security Futures (GV)
- Cboe Crude Oil ETF Volatility Security Futures (OV)
- Cboe Emerging Market ETF Volatility Security Futures (VXEM)
- Cboe Brazil ETF Volatillity Security Futures (VXEW)
- Cboe AMERIBOR Futures
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[6], market data [7], and other educational resources[8] are available on the CFE website.[9]
American Financial Exchange[edit]
CBOE hosts, operates and provides surveillance for the American Financial Exchange, and Chicago-based Northern Trust acts as a settlement bank for AFX. CBOE Global Markets CEO Edward T. Tilly serves as an AFX director.
AFX, launched on Cboe in December 2015, is an effort to bring standardization and transparency to interbank lending while reducing transaction costs through an electronic market.[10]
On August 16, 2019 AFX launched three-month and seven-day cash-settled AMERIBOR futures on the Cboe Futures Exchange.[11] [12]
On August 23, 2021, Cboe Global Markets announced plans to launch futures on the AMERIBOR® Term-30 interest rate benchmark on the Cboe Futures Exchange on Sept. 13, 2021, subject to regulatory review. The AMERIBOR Term-30 benchmark is disseminated by the American Financial Exchange.[13]
Regulation[edit]
Cboe Futures Exchange is regulated by the Commodity Futures Trading Commission (CFTC).
Technology[edit]
Cboe announced the successful migration of Cboe Futures Exchange to the its new proprietary Bats technology platform on February 28, 2018, the first legacy Cboe platform to transition to Bats technology after Cboe's acquisition of Bats in February 2017.[14]
Key People[edit]
Edward Tilly, Chairman of the Board
Jay Caauwe, Senior Director
Matt McFarland, Vice President, Head of Futures
Michael Mollet, Senior Director - Product Development
Jennifer Fortino, Director
Karen Christiansen, Regulatory and compliance leader in listed derivatives
Board of Directors[edit]
Edward Tilly
Gilbert Bassett, Jr.
Michael Gorham
James Parisi
Jill Sommers
Awards[edit]
- 2004 Leader in Futures Innovation for the CBOE Volatility Index Futures (Most Innovative Index Derivative Award): 2004 Super Bowl of Indexing Conference
Market Activity[edit]
- 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[edit]
- ↑ Cboe U.S. Futures Overview. Cboe.
- ↑ CBOE plans nearly non-stop VIX futures trading this year -CEO. Reuters.
- ↑ CBOE Holdings to List VIX "Weeklys" Futures And Options. CBOE via PR Newswire.
- ↑ Cboe Plans December 10 Launch of Bitcoin Futures Trading. CBOE.
- ↑ Cboe Exchange Puts Brakes on Bitcoin Futures Listing. Coindesk.
- ↑ Product Specifications. CBOE Futures Exchange.
- ↑ Market Data. CBOE Futures Exchange.
- ↑ Educational resources. CBOE Futures Exchange.
- ↑ CFE home page. CBOE Futures Exchange.
- ↑ CBOE, Northern Trust and Sandor team on new financial exchange. Crain's Chicago Business.
- ↑ Cboe Futures Exchange and American Financial Exchange Announce Planned Launch of AMERIBOR® Futures. Press Release.
- ↑ Cboe Ameribor Futures Product Launch Notice. Cboe.
- ↑ Cboe Futures Exchange to List AMERIBOR® Term-30 Futures on September 13, 2021. Cboe Global Markets.
- ↑ Cboe Announces Successful Migration of Cboe Futures Exchange to Proprietary Technology Platform. Cboe.