Chicago Board Options Exchange officials today unveiled a new volatility index that will track options volatility on the tech-heavy Nasdaq 100 stock index. In a news release, exchange officials said they developed the Nasdaq Volatility index, or VXN, because of customer demand. In early 1999, CBOE officials started noticing the exchange’s VIX index didn’t capture the difference in volatility between tech stocks and other equities, said William J. Brodsky, chairman. "With the availability of a continuously updated volatility index on the Nasdaq, we expect the VXN will be the premier benchmark of market sentiment for Nasdaq-based markets.”
The VNX can be accessed through the CBOE’s website at www.cboe.com/quotes.
