VXEEM is based on the options of the iShares MSCI Emerging Markets Index exchange-traded fund.
CFE said that VXEEM security futures – in conjunction with other volatility products – will allow market participants to trade cross-index or cross-asset volatility in addition to hedging emerging markets volatility exposure or making direct plays on emerging markets volatility.
Barclays Capital will be a lead market maker for VXEM security futures.
CFE managing director Jim Lubin said that they are delighted that Barclays Capital has taken on a market-making role. Their expertise in volatility trading should help them create a deep and liquid market in VXEM futures. Further, they look forward to working with them to build out their suite of volatility offerings.
