By Tom Polansek and Doris Frankel
CHICAGO, Sept 30 (Reuters) - CBOE Holdings Inc said on Monday that it will expand trading hours for futures on the CBOE Volatility Index about a month later than expected in late October.
CBOE, operator of the Chicago Board Options Exchange, is aiming to increase overseas trading of its lucrative VIX futures by adding 5 hours and 45 minutes to the trading day in two stages. The biggest chunk of extra time will come during European trading hours.
The first phase will begin on Oct. 21, according to CBOE. The company in July said the first phase would begin in late September.
A CBOE spokeswoman could not immediately be reached for comment about the change.
The first phase will add a 45-minute post-settlement trading period 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 Monday to Thursday, the market will reopen for a new trading period from 3:30 p.m. CT (2030 GMT) to 4:15 p.m. CT (2115 GMT). Trading will then resume at 7:00 a.m. CT the following morning.
A second round of changes will begin on Oct. 28. CBOE previously said the second phase would start "in the weeks that follow" the first phase.
It will allow European-based customers to trade VIX futures during their local trading hours by beginning the current trading session at 2:00 a.m. CT Monday to Friday, instead of the current opening time of 7:00 a.m. CT.
CBOE in February opened a communications hub outside of London to facilitate VIX futures trading.
"Volatility traders have eagerly anticipated the expansion of trading hours," CBOE Holdings Chief Executive Officer Edward Tilly said in a statement.
CBOE had initially planned to start extending the trading day in May. However, a half-day outage at the Chicago Board Options Exchange in April and another more limited outage exposed software problems that came about as it prepared for the expanded hours.