BOCA RATON, Florida March 12 CBOE Holdings Inc
, operator of the largest options exchange by trading
volume, will implement nearly non-stop trading for futures on
the its Volatility Index by the end of the year to capture more
Asian trading, its chief executive said on Wednesday.
The index, also known as the VIX, is a widely followed gauge
that measures investor sentiment.
CBOE, operator of the CBOE Futures Exchange and the Chicago
Board Options Exchange, will expand trading in VIX futures to 23
hours and 45 minutes a day, five days a week, from 14 hours a
day, CEO Ed Tilly said at a futures conference in Florida.
"We need to pick up the Asian trading day," he told
reporters. "We're committed to this year."
A start date was not announced.
Chicago-based CBOE also will evaluate whether to open a
trading hub in Asia to facilitate trading, Tilly said.
In November, CBOE began allowing trading in VIX futures to
begin at 2 a.m. CST (0800 GMT), five hours earlier than usual,
as the company sought to pull in traders from Europe. The
company in February 2013 opened a communications hub outside of
London to facilitate VIX futures trading.
In February, 7.6 percent of the average daily trading volume
in VIX futures comes during non-U.S. trading hours, according to
CBOE. Average daily volume in VIX futures during the month
reached a record of 216,797 contracts. Volume during non-U.S.
trading hours spiked to 14 percent on March 3 due to uncertainty
about political turmoil in Ukraine, Tilly said.
CBOE also plans to expand trading hours for VIX options and
options on the Standard & Poor's 500 Index this year, he said.
CBOE's proprietary products, led by futures and options on
the VIX and the Standard & Poor's 500 Index, are a centerpiece
of the exchange operator's offerings.