The CBOE - hoping to attract business from Europe and Asia, not to mention cater to U.S. traders operating in the middle of the night when a good deal of major news breaks - has now extended the trading hours of its highly profitable volatility futures to nearly 24 hours per day.
Trading will be continuous between Sunday at 6 PM ET until Friday at 4:15 PM, with the exception of a 15 minute break each day starting at 4:15.
Prior to the change, the market had been open from 3 AM on each day, and about 7.5% of contracts changed hands outside of regular U.S. hours.
According to CNBC, the mutual fund giant is working with other investment firms to launch a new low-cost (and presumably HFT-free) stock trading alternative, with Chairman Ned Joshson said to be closely involved.
Among those looking on: KCG Holdings (KCG -2.6%), CBOE Holdings (CBOE -1.6%), IntercontinentalExchange (ICE -1.3%), Nasdaq OMX (NDAQ +1%), Schwab (SCHW -3.9%), E*Trade (ETFC -3.5%), TD Ameritrade (AMTD -1.6%).
"CBOE is pleased that the Court has concluded what we always knew to be true - CBOE does not infringe ISE's asserted patent." says CEO Edward Tilly after a federal court rules in its favor in a 7-year-old patent case with International Securities Exchange. "Our unique Hybrid trading system, which combines the best features of electronic and open outcry trading, is just one of the many innovations that have made CBOE the leader in the options industry."
The CBOE: Where fear never sleeps. Beginning June 22, futures action in the VIX will be available nearly around the clock, with trading beginning on Sunday evenings and not shutting down until Miller Time on Fridays.
The calculation of the actual VIX, however, will only take place during regular U.S. trading hours, says the exchange.
: 3rd time $CBOE is up on unusual volume. It will probably pullback tomorrow.
CBOE vs. ETF Alternatives
CBOE Holdings, Inc., is engaged in trading of listed, or exchange-traded, derivatives contracts on four categories; index options, futures on VIX, options on the stocks of individual equity, on the other exchange-traded funds and exchange traded notes.