MIAX re-launched SPIKES volatility futures on CME's Globex today. I don't think it will succeed. Why? SPIKES and VIX price action is the exact same. Why go through all the hassle to trade SPIKES when VIX is the same thing?pic.twitter.com/4nALaFaQFx
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I believe that’s a desired “feature” of SPIKES. My understanding is that no exchange other than CBOE can provide VIX products. Lower the basis between the two, easier it is to hedge SPIKES with VIX futures and thus easier it is for the liquidity to transfer...
Interesting. Thanks for the response. Why would someone want to trade SPIKES and not VIX, or rather than VIX? In other words why would the liquidity "need" to transfer?
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I don’t know the details but MIAX couple offer cheaper fees than CBOE charges for VIX, for example. As the products become similar then the only differentiation is tech/fees/tick size/market structure. If the perception is that SPIKES = VIX it’s a huge victory for MIAX.
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