* VIX futures trading hours to increase in two stages
* Start of first phase delayed from late September
* Second phase to start Oct. 28
By Tom Polansek and Doris Frankel
CHICAGO, Sept 30 (Reuters) - CBOE Holdings Inc said
on Monday it has delayed the launch of expanded trading hours
for futures on the CBOE Volatility Index for a second time,
setting Oct. 21 as the new target start date.
CBOE, operator of the CBOE Futures Exchange and Chicago
Board Options Exchange, said in July that the extension would
begin in late September.
A CBOE spokeswoman had no immediate further comment on the
The exchange operator is aiming to increase overseas trading
of its lucrative CBOE Volatility Index by adding five
hours and 45 minutes to the trading day in two stages. The
biggest chunk of extra time will come during European trading
The index, also known as the VIX, is a widely followed gauge
that measures investors' sentiment.
The first phase of the extension will add a 45-minute
post-settlement trading period to the current trading hours of
7:00 a.m. CT (1200 GMT) to 3:15 p.m CT (2015 GMT). Following the
close of trading Monday to Thursday, the market will reopen for
a new trading period from 3:30 p.m. CT (2030 GMT) to 4:15 p.m.
CT (2115 GMT). Trading will then resume at 7:00 a.m. CT the
The second round of changes will begin on Oct. 28, CBOE
It will allow European-based customers to trade VIX futures
during their local trading hours by beginning the current
trading session at 2:00 a.m. CT Monday to Friday, instead of the
current opening time of 7:00 a.m. CT.
"We are pleased to provide our European customers with the
opportunity to trade VIX futures during local trading hours, but
we also believe our entire global base of VIX users will benefit
by extended trading hours," CBOE Holdings Chief Executive
Officer Edward Tilly said in a statement.
CBOE in February opened a communications hub outside of
London to facilitate VIX futures trading.
CBOE had initially planned to start extending the trading
day in May. However, it delayed the increase after a half-day
outage at the Chicago Board Options Exchange in April exposed
Exchanges, including CBOE, have since become more cautious
about rolling out product offerings, changing market structure
and adding trading hours because of a Nasdaq OMX Group
outage last month, said Chris Allen, equity analyst for Evercore
Following the three-hour Nasdaq disruption, U.S. Securities
and Exchange Commission Chair Mary Jo White met privately with
top executives of the major exchanges, including CBOE executive
chairman William Brodsky, to discuss market reforms.
"The SEC is very on top of all of the exchanges right now,"
CBOE shares were down 0.1 percent at 45.23.