CBOE Holdings Inc., operator of the largest options exchange by trading volume, reopened trading in its Volatility Index futures after technical issues caused a delay early Thursday.
The CBOE Futures Exchange, the only market place for VIX futures, opened trading in futures on the market’s so-called fear gauge at 9:10 a.m. EDT, according to electronic notices. The earlier issues led to the cancellation of some orders entered Thursday morning.
With investors staring down the barrel of the U.S. government default, readings on the stock market’s so-called fear gauge have jumped–and trading volume in exchange-traded securities that track the CBOE Volatility Index has surged….
Outflows show that some investors who bought the products as hedges are already cashing out.
“People who buy these as hedges, or portfolio insurance, are taking money off the table,” said Adam Grimes, chief investment officer at Waverly Advisors, which provides tactical research for traders and money managers.