Cboe Global Markets launches new Cboe S&P 500 Variance Futures

Cboe Global Markets plans to launch a newly redesigned Cboe S&P 500 Variance Futures contract – Ticker: VA -, expected to begin trading on September 23. The Cboe S&P 500 Variance Futures contracts will settle based on a calculation of the annualized realized variance of the S&P 500 Index. The realized variance will be calculated once each day from a series of values of the S&P 500 Index beginning with the closing index value on the first day a VA futures contract is listed for trading and ending with the special opening quotation of the S&P 500 Index on the final settlement date of that contract. Cboe’s new VA futures aim to introduce a simplified approach to variance trading and settlement, providing an exchange-listed alternative to OTC variance swaps. The latest product aims to address feedback from a broad spectrum of market participants. As such, the redesigned futures leverage a more straightforward methodology and will quote and trade directly in variance units with a contract size of $12. The new VA futures will be exclusively listed and traded on Cboe Futures Exchange.