By Tom Polansek and Doris Frankel
CHICAGO, Sept 30 (Reuters) - CBOE Holdings Inc saidon Monday that it will expand trading hours for futures on theCBOE Volatility Index about a month later than expectedin late October.
CBOE, operator of the Chicago Board Options Exchange, isaiming to increase overseas trading of its lucrative VIX futuresby adding 5 hours and 45 minutes to the trading day in twostages. The biggest chunk of extra time will come duringEuropean trading hours.
The first phase will begin on Oct. 21, according to CBOE.The company in July said the first phase would begin in lateSeptember.
A CBOE spokeswoman could not immediately be reached forcomment about the change.
The first phase will add a 45-minute post-settlement tradingperiod to the current trading hours of 7:00 a.m. CT (1200 GMT)to 3:15 p.m CT (2015 GMT). Following the close of trading Mondayto Thursday, the market will reopen for a new trading periodfrom 3:30 p.m. CT (2030 GMT) to 4:15 p.m. CT (2115 GMT). Tradingwill then resume at 7:00 a.m. CT the following morning.
A second round of changes will begin on Oct. 28. CBOEpreviously said the second phase would start "in the weeks thatfollow" the first phase.
It will allow European-based customers to trade VIX futuresduring their local trading hours by beginning the currenttrading session at 2:00 a.m. CT Monday to Friday, instead of thecurrent opening time of 7:00 a.m. CT.
CBOE in February opened a communications hub outside ofLondon to facilitate VIX futures trading.
"Volatility traders have eagerly anticipated the expansionof trading hours," CBOE Holdings Chief Executive Officer EdwardTilly said in a statement.
CBOE had initially planned to start extending the tradingday in May. However, a half-day outage at the Chicago BoardOptions Exchange in April and another more limited outageexposed software problems that came about as it prepared for theexpanded hours.
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