CBOE Sets Record With 21,502 Contracts Traded On Volatility Index

Trading in futures on the CBOE Volatility Index (VIX) reached new highs thismonth, setting three new records. Volume for the month of January totalled 21,502 contracts, eclipsing theprevious record of 17,111 contracts in May 2005. Open interest in VIXfutures stood

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Trading in futures on the CBOE Volatility Index (VIX) reached new highs thismonth, setting three new records.

Volume for the month of January totalled 21,502 contracts, eclipsing theprevious record of 17,111 contracts in May 2005. Open interest in VIXfutures stood at 19,476 contracts at month’s end, also a new all-time high.On Tuesday, January 31st, a new record for single day volume in VIX futureswas set as 4,604 contracts traded at the Chicago Futures Exchange (CFE).

Additionally in January, CFE established a new record for total Exchangeopen interest. At the end of the month, total CFE open interest climbed toa new high of 21,510 contracts, surpassing the previous high in openinterest of 18,634 contracts on November 14, 2005.

“VIX futures are becoming more popular with investors as liquidity in themarket continues to build impressively,” said Patrick Fay, managingdirector, CBOE Futures Exchange. “VIX futures provide a great vehicle fortrading volatility and they are a convenient, easy tool for hedgingvolatility exposure in S&P 500 Index related positions.”

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