China Derivatives Exchange Announces Fourth Quarter Launch of Crude Oil and Gold Futures Based Upon New Volatility Indexes

Online, July 24, 2012 (Newswire.com) - As one of the world's most diverse derivatives marketplace, China Derivatives Exchange (CHDEX), announced that in the fourth quarter of 2012 it will begin offering futures and options contracts based on volatility indexes that combine CHDEX's options market data with the Volatility Weighted Index® methodology. These contracts will be listed with, and subject to, the rules and regulations of CHDEX.
The CHDEX Volatility Weighted Index and the CHDEX Gold Volatility Index are the first to launch since the exchange entered a seven-year licensing agreement with the market makers, which gives CHDEX 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 indexes are expected to launch in the first quarter of 2013.
"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 Timothy Bergstein, CHDEX's Chief Operating Officer and 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.
As one of the world's most diverse derivatives marketplace, China Derivatives Exchange is where the world of investment comes to manage risk. CHDEX offers 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. CHDEX brings buyers and sellers together through its electronic trading platform and its trading facilities in Beijing. CHDEX also operates some 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.