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CME Group, Nasdaq Introduce Futures On The Nasdaq-100 Volatility Index

Renato Capelj

CME Group Inc (NASDAQ: CME), alongside Nasdaq Inc (NASDAQ: NDAQ), formally announced the introduction of futures contracts on the Nasdaq-100 Volatility Index (VOLQ).

What Happened?

Pending regulatory review, CME Group, a leader in derivatives, is building on its Nasdaq relationship with the release of futures tied to the 30-day implied volatility of cash Nasdaq-100 Index (NDX) options.

The contract has a $1,000 multiplier and will be settled to cash based on the VOLQ Index.

“We’re pleased to further build on our longstanding, successful relationship with Nasdaq to offer these new futures contracts on the innovative Nasdaq-100 Volatility Index,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.

“VOLQ futures respond directly to growing demand for tools to hedge portfolio volatility exposure or trade at-the-money volatility on a leading global benchmark equity index, the Nasdaq-100. Additionally, they will complement our deeply liquid Nasdaq futures and options product line, including the benchmark E-mini and Micro E-mini Nasdaq-100 contracts.”

Why It Matters

Overall, the development will increase access to liquid instruments that help participants better manage portfolio volatility.

“The Nasdaq-100 index tracks the world’s most innovative companies and has shown incredible strength and resilience through its outstanding performance,” said Lauren Dillard, Executive Vice President and Head of Nasdaq’s Global Information Services.

“The VOLQ index enables investors to track Nasdaq-100 volatility, and CME Group’s launch of VOLQ futures is a great step in bringing more innovative products around market volatility to investors.”

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