Fri, Jul 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

MIAX Exchange launches VIX competitor

Wednesday, February 20, 2019

Bailey McCann, Opalesque New York:

A new competitor to the VIX launched today on the MIAX Options Exchange. The competitor - SPIKES - was created by T3 Index, an indexing firm, as part of a partnership with MIAX Options' parent holding company, Miami International Holdings, Inc.

The SPIKES Index is designed to track volatility in the market like the VIX. However, its options will act as a measure of the expected 30- day volatility in the SPDR S&P 500 ETF (SPY), instead of the S&P 500 Index (SPX).

"We think it's worthwhile to bring some competition to the volatility market and offer something that doesn't come with some of the trust issues associated with trading VIX," said Simon Ho, CEO of T3 Index in an interview with Opalesque.

SPIKES uses variance swap methodology and live SPY option prices to calculate volatility. SPIKES uses standard monthly SPY options which expire on the third Friday of every month to calculate the index.

According to Ho, traders will get faster information about market volatility as the index publishes every 100 milliseconds instead of every 15 seconds as with VIX. SPIKES also uses a proprietary 'price dragging' technique that is designed the minimize price distortions. Price Dragging uses eligible trades, bids, and offer prices to reduce erratic movements of the index value that could result from illiquid out-of-the-money options. The end result is a measure of volatility will print faster than the VIX in fast mar......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from