Cboe Considers VIX Perpetual Futures: A New Frontier in Financial Markets

The Cboe Global Markets Inc. is contemplating the introduction of perpetual futures based on the Chicago Board Options Exchange Volatility Index (VIX), a key indicator of market volatility for American futures markets. This move comes amidst US exchanges' efforts to expand their offerings to include highly leveraged instruments that dominate the crypto space. The VIX, which has been a vital tool for risk management by institutional and retail investors alike since its inception decades ago, could now be extended to this new format of perpetual futures. These proposed products are seen as an alternative to crypto assets, offering greater liquidity and leverage without the extreme volatility risks associated with virtual currencies. This step from Cboe represents not only a chance for product diversification but also an attempt to broaden its customer base into traditional financial markets. The launch of these perpetual futures could signify the beginning of a new era in the intersection between market volatility and financial leverage, potentially reshaping both the Cboe's offerings and the broader derivatives industry. Source: Bloomberg Markets