Cboe Eyes Perpetual VIX Futures as Crypto-Inspired Product Goes Mainstream

Cboe Global Markets is exploring the launch of perpetual futures tied to the Cboe Volatility Index (VIX), also known as Wall Street's fear gauge. The VIX perpetuals would have no expiration date, a feature that has made them a dominant instrument in crypto trading.

A perpetual future works like a regular futures contract with the end date removed. Standard VIX futures expire on a set schedule, requiring traders to close an expiring contract and open a new one, known as rolling. A perpetual skips this process entirely.

Cboe has not published contract specifications, launch dates or regulatory filings for the proposed product, indicating that it is still in an early exploratory stage. The initiative appears to be driven by the goal of providing access to volatility exposure for participants who can trade CFTC-regulated futures but generally stay away from securities-based products.

Cboe launched VIX futures on the Cboe Futures Exchange (CFE) in 2004, which are cash-settled against the special opening quotation of the VIX Index. Each standard contract carries a multiplier of $1,000 per index point. For smaller traders, Cboe also offers a mini VIX contract with a $100 multiplier.