You know Vix. Meet his sister, Six

The Volatility Index has taken the world by storm. So what is CBOE’s next trick? Theo Casey hears it’s a new skew indicator. But what can skew tell us – and is there a market for it? Perhaps it should be seen and not traded...

Bill Brodsky stands at a crossroads. He looks up and sees two signs.

“Left: Amass large trading volume with deep fee discounts.”

“Right: Attempt to muscle in on rivals’ most popular contracts.”

Bill, and the Chicago Board Options Exchange, forsake both alternatives and forge their own path.

This may be unfair to Nasdaq OMX PHLX – king of the dividend arbitrage strategy, stimulated by flat fees, in which market makers can harvest dividends from unexercised options – and to the International Securities Exchange, which battled CBOE for four years for the right to list competing Standard...

The rest of this article is for subscribers only. Would you like to take a free trial?

Free trial

  • News & Analysis access
  • Extensive data searches
  • Access to archive
  • Weekly newsletter