The CBOE is going to move a little less expeditiously on extending the trading day to avoid further unplanned truncations of the trading day.
The parent of the Chicago Board Options Exchange said Friday it was delaying a planned extension of trading hours for its fast-growing VIX volatility-index contracts until it was satisfied there would be no repeat of the technical issues that have twice hit its markets in the past 10 days.…
William Brodsky, the exchange's outgoing chief executive, on Friday said CBOE was also developing faster backup systems to support trading in contracts offered exclusively on its platforms, such as the VIX and derivatives used to hedge exposure to the Standard & Poor's 500-stock index….
Mr. Brodsky said the timetable for lengthening the trading day was being extended to allow for an external review of its systems.
CBOE plans to extend VIX trading initially by 45 minutes, and then by another five hours to draw in European traders.
"This is a major, major systems enhancement," said Mr. Brodsky, who said the planned extension—first announced last fall—wouldn't be launched until its systems were ready. He gave no start date.