US derivatives exchange CME Group has confirmed plans to launch new futures based on the Nasdaq-100 Volatility Index (VOLQ).
CME plans to launch the new VOQL futures contracts on 5 October pending a regulatory review, and the new derivatives will provide traders with expanded capabilities to hedge portfolio volatility exposure.
“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,” said CME Group’s global head of equity index and alternative investment products, Tim McCourt.
“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.”
The VOLQ, which was introduced by Nasdaq in 2019, measures 30-day implied volatility of the Nasdaq-100 Index (NDX) to help traders better understand and manage portfolio volatility. The real-time index reflects prices of NDX options for accurate, at-the-money options prices, mostly used by options market participants.
“The Nasdaq-100 index tracks the world’s most innovative companies and has shown incredible strength and resilience through its outstanding performance,” added executive vice president and head of Nasdaq global information services, Lauren Dillard.
“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.”