Cboe Eyes VIX Perpetuals Amid Shift to Highly Leveraged Instruments

Cboe Global Markets Inc. is exploring the listing of perpetual futures based on the Cboe Volatility Index (VIX), a move that reflects the growing trend of traditional exchanges venturing into highly leveraged instruments popularized by the crypto market. The VIX measures how volatile S&P 500 options traders think the next 30 days will be, and there currently is no direct way to trade the index's level.

Perpetual futures, also known as inverse futures or futures with no expiration date, have been a staple of the crypto market, particularly for Bitcoin and other cryptocurrencies. They allow traders to take on large positions with minimal upfront costs, which can amplify gains and losses.

However, Cboe is not alone in this pursuit. US exchanges are racing to bring these highly leveraged instruments to new asset classes, signaling a shift in the traditional financial landscape.