November 6, 2013 / 12:05 AM / 4 years ago

CBOE to take time extending VIX options trading hours -CEO

CHICAGO, Nov 5 (Reuters) - 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 interview.

“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 options.

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.

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