Cboe Futures Exchange and Trading of VIX Futures Turn 20
Cboe Global Markets, Inc marked the 20th anniversary of Cboe Futures Exchange (CFE) and the trading of Cboe Volatility Index (VIX) futures. CFE was launched to provide a liquid and transparent on-exchange volatility futures offering, with VIX futures being the first product listed in 2004. On March 26, 2004, CFE successfully opened for trading, with 449 VIX futures contracts trading on the all-electronic exchange. Based on the VIX Index, which has served as a gauge for U.S. equity market sentiment since its launch in 1993, VIX futures are among the most actively traded exchange-listed volatility futures in the world, with total volumes reaching 53.7 million contracts in 2023. VIX futures, and the addition of VIX options in 2006, were a pivotal first step in making volatility a tradable asset class, breaking down access barriers for investors and paving the way for the development of a comprehensive ecosystem including additional futures, options and other exchange-traded products (ETPs) utilizing these derivatives.