CHICAGO Nov 5 CBOE Holdings Inc will
not rush to expand trading hours for options on the CBOE
Volatility Index after implementing an extended trading schedule
for futures in recent days, Chief Executive Officer Ed Tilly
said on Tuesday.
CBOE, operator of the CBOE Futures Exchange and Chicago
Board Options Exchange, will make sure there is interest in the
expanded hours for futures on the Volatility Index before
adding hours to options trading, Tilly told Reuters in an
"We want to really build some critical mass in those
off-U.S. trading hours before we expand into other products,"
Tilly said. A move toward extended trading hours for VIX options
is "out there a little bit," he added.
CBOE is focused on its volatility products as a way to add
customers and grow its business amid competition from other
exchanges. The company opened a communications hub outside of
London in February to facilitate VIX futures trading.
The Volatility Index, known as the VIX, is often referred
to as Wall Street's fear gauge. It is a 30-day forecast of stock
market volatility measured using a strip of near-term S&P 500
CBOE on Oct. 8 set an all-time, single-day volume record for
VIX options of nearly 1.8 million contracts. A daily average of
slightly above 565,000 contracts traded in the first nine months
of the year.
On Monday, CBOE began allowing trading in its popular VIX
futures to begin at 2 a.m. CST (0800 GMT), five hours earlier
than usual, as the company seeks to pull in traders from Europe.
On Oct. 28, CBOE added a 45-minute post-settlement trading
period to the previous trading hours of 7 a.m. to 3:15 p.m, a
move aimed at U.S. customers.