Wednesday, October 13, 2010

Nymex, Comex To Launch Gold, Crude Oil Volatility Index

just as gold hit all-time high today. As if they need more volatility heaped on top of it.

From Kitco News:

"Beginning Monday, the New York Mercantile Exchange and its Comex division will launch a gold volatility index and crude oil volatility index for trading on the CME Globex electronic trading platorm. Both indexes, using market data from Nymex and Comex, will trade as futures contracts on Globex and the Chicago Board Options Exchange Volatility Index. The gold volatility index will have a 60-day forward looking index and the crude oil index will have a 30-day look-ahead. Both contracts will be listed on Nymex and Comex, which are part of the CME Group."

Gold and oil already have:
Spot trade
Options on futures
ETF (unleveraged and leveraged; the latter relys on swap contracts)
Options on ETF (including Weeklys)

Now the volatility index will be added, you can trade futures or options on the index.

Nymex/Comex may or may not have physical gold to back their contracts. So what do they do? Obfuscate (aka smoke and mirror), and hope people won't notice.


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