Cboe Seeks to Turn the VIX Into a Never-Ending Trade
Key Highlights: Perpetual VIX contracts do not expire and use funding rates to track the spot index. Cboe’s potential VIX futures launch could expand volatility trading and hedging activity. Market makers still face funding costs, basis risk and challenges hedging an index that cannot be traded as a cash asset. Perpetual VIX Contracts Aim to ...