CBOE Explores Perpetual VIX Futures Without Monthly Expiry

CBOE explores perpetual VIX futures without fixed expiry, bringing a crypto-style contract structure to traditional volatility markets

CBOE is exploring the introduction of perpetual VIX futures that would not have fixed expiration dates, according to information shared by Coin Bureau. The proposed contracts would bring a structure commonly associated with cryptocurrency markets into traditional derivatives trading.

Unlike conventional VIX futures, perpetual contracts would not require traders to close or roll positions into a new monthly contract as expiration approaches. The change could provide a more continuous way to gain exposure to movements in volatility.

CBOE Considers Perpetual VIX Futures

The Chicago Board Options Exchange, or CBOE, is examining perpetual VIX futures as an alternative to the existing structure of futures contracts tied to the CBOE Volatility Index, according to Coin Bureau.

Traditional VIX futures have defined expiration dates, meaning traders seeking to maintain an ongoing position generally need to move their exposure from one contract to another as contracts approach maturity.

A perpetual structure would remove that recurring expiration from the contract itself. The concept resembles perpetual futures widely used in cryptocurrency markets, where positions can remain open without a conventional expiry date.

The proposal would therefore represent a change in how traders could maintain exposure to the market’s widely followed volatility benchmark.

Potential Impact on Volatility Trading

According to the information shared by Coin Bureau, perpetual VIX futures could provide more continuous volatility exposure while reducing the need for regular contract rollovers.

The absence of monthly expirations could also reduce the impact of rollover activity for traders maintaining positions over time. Coin Bureau said the structure could potentially attract additional short-term and systematic trading activity.

Those potential benefits would depend on how such contracts are structured and traded. The source post does not provide details on a launch date, contract specifications or whether CBOE has made a final decision to introduce the products.

Hedging Challenges Remain

A perpetual VIX futures structure would also present challenges for market makers and other participants.

The VIX itself cannot be purchased directly in the same way as a stock or Bitcoin. As a result, participants providing liquidity for perpetual contracts would still need to manage funding costs, basis risk and more complicated hedging requirements, according to Coin Bureau.

Basis risk refers to the possibility that the price of a derivative and the underlying exposure used to hedge it do not move in exact alignment. For volatility products, managing that difference can add complexity to market-making and risk management.

The absence of a conventional expiration date would therefore change the structure of the contract without eliminating the underlying challenges associated with trading and hedging volatility exposure.

Crypto-Inspired Structure Moves Toward Traditional Finance

The proposal also reflects a broader structural connection between cryptocurrency market design and traditional financial markets, according to Coin Bureau.

Perpetual contracts have become a familiar trading instrument in crypto markets because they allow participants to maintain positions without conventional expiration dates. Applying a similar structure to VIX futures would bring that design into a major traditional derivatives market.

CBOE’s exploration remains the key development described in the source. Further details on whether perpetual VIX futures will ultimately be introduced, and how such contracts would operate, have not been provided.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.