News Release

CME Group Announces Fourth Quarter Launch of Crude Oil (WTI) and Gold VIX Futures Based Upon New Volatility Indexes

Tue Sep 21 2010

CHICAGO, Sept. 21 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, announced that in the fourth quarter of 2010 it will begin offering futures and options contracts based on volatility indexes that combine CME Group's options market data with the Chicago Board Options Exchange (CBOE) Volatility Index® (VIX®) methodology.  These contracts will be listed with, and subject to, the rules and regulations of NYMEX and COMEX.

The CBOE/NYMEX WTI Volatility Index and the CBOE/COMEX Gold Volatility Index are the first to launch since CME Group entered a seven-year licensing agreement with CBOE, which gives CME Group worldwide rights to list futures and options on futures for volatility indexes on a variety of asset classes. In addition, futures on corn and soybean VIX indexes are expected to launch in the first quarter of 2011.

"The new indexes provide a direct and effective way to track volatility in a variety of benchmark asset classes by leveraging the liquidly of our electronic options on futures markets," said Bryan Durkin, CME Group's Chief Operating Officer and Managing Director of Products and Services.  "Once launched, the futures and options contracts based on the indexes will give global market participants tradable tools to express their opinions on the direction of the volatility in the markets."  

The index calculations use prices from the exchange's deep and liquid options on futures markets to create new and effective measures of expected volatility that offer direct price exposure to the underlying spot market.  Data for the indexes is now being disseminated and can be viewed online at www.cmegroup.com/vix.  In addition, real-time data is available through additional sources including CBOE, CME Group's Market Data Pipeline (MDP), CBOE and CME Group quote vendors.

To view the March 2010 news release announcing the CME Group licensing agreement with CBOE visit: http://cmegroup.mediaroom.com/index.php?s=43&item=2994.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate.  CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago.  CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®.  These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets. 

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago.  NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc.  All other trademarks are the property of their respective owners.  Further information about CME Group (Nasdaq: CME) and its products can be found at www.cmegroup.com

CBOE Volatility Index® and VIX® are registered trademarks of Chicago Board Options Exchange, Incorporated.

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SOURCE CME Group

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