On Tuesday, India’s National Stock Exchange Ltd (NSE) received approval by its market regulator, the Securities and Exchange Board of India (SEBI), to launch VIX trading on futures contracts.?
U.K. Sinha, chairman of SEBI, said via Reuters, “There was a request from NSE for launching futures on the?volatility index… SEBI has given its go ahead to NSE to launch?that.”
The Indian VIX futures contract will reportedly encompass three weekly contracts and each week, a new contract will be available to trade. The minimum trading size for the contract is expected to be Rs 10 lakh; they will have a cash settlement.?
For the NSE, it’s been a longtime coming to trade the product as it initially applied to begin trading back in 2010. One reason for the delay has been attributed to SEBI’s alleged concerns about the product’s “speculative nature.” However, this didn’t stop NSE from giving live quotes on the VIX dating back to July 2010; it initially launched in 2008. ??
Back in the U.S., just last week the CBOE said it would expand its VIX trading hours for the Asian market’s time zones to meet the growing demand for volatility products in this region. Additional details had not been provided. ?