Russ Cohen

Cboe Launches Volatility Index for U.S. Treasury Market Cboe’s Innovative Move into Treasury Market Volatility

Introduction of VIXTLT Index

Bitcoin Futures Traded On Chicago Board Options Exchange

Scott Olson/Getty Images News

Cboe Global Markets (BATS:CBOE) announced its strategic initiative to introduce a groundbreaking index that will measure volatility within the U.S. Treasury market. The new index, named the Cboe 20+ Year Treasury Bond ETF Volatility Basis Point Index (VIXTLT), is set to provide investors with a valuable tool to gauge future expected volatility in Treasury securities using listed options on the iShares 20+ Year Treasury Bond ETF (TLT).

Details and Methodology

Anticipated for launch in the third quarter of 2024, the VIXTLT Index will leverage a modified version of Cboe’s proprietary VIX Index methodology. Similar to the functionality of the Cboe Volatility Index (VIX) in measuring 30-day anticipated volatility in the U.S. equity market, the VIXTLT seeks to offer a comparable metric for the Treasury market.

Expanding the Index Suite

The introduction of the VIXTLT Index represents a significant expansion of Cboe’s growing portfolio of volatility indices. This move underscores Cboe’s commitment to innovation and further enriches its current lineup of over 450 derivatives-based indices, solidifying its position as a leader in the financial market.

See also  The Perilous Proposals of Trump's Son-In-Law in Israel-Hamas Conflict