Cboe Global Markets launches new tool to help traders hedge against US stock volatility

The Chicago Board Options Exchange (CBOE) plans to launch an enhanced version of the CBOE S&P 500 Variance Futures, providing traders with a new tool to hedge against fluctuations in the US stock market. These contracts will allow traders to hedge the actual volatility of the S&P 500 Index, unlike the existing VIX contracts that reflect future expected volatility. Variance futures have already been traded in private transactions, and the revised exchange-traded futures contracts will be centrally cleared, helping to reduce costs and increase price transparency. With the potential increase in volatility in the US stock market, this new tool may meet traders' hedging needs