Options exchange Cboe to launch 1-day Volatility Index - reports

Short-term market swings

Exchange group Cboe is set to launch the 1-day Volatility Index, or VIX1D, today (24 April).

This marks the biggest shakeup in years for the VIX, with the newest version tracking expectations of short-term market swings. The VIX1D will measure expected volatility in the S&P 500 over the next day of trading, unlike the VIX which measures it over the following month. Investors embrace risk as volatility and recession hamper search for yield Cboe CEO Rob Hocking told the Financial Times a surge in short-term option trading provided a certain feel to the market that the 30-day "just was not capturing", and hoped the shorter-dated index will match better. The VIX will contin...