The rush is on for pros able to trade volatility products-VIX futures and options and volatility based ETNs like VXX and VXZ. Recent rollouts of additional volatility products indicate the strong interest and potential for trader spots on volatility desks in the U.S., U.K, and Asia.
Look for additional volatility risk trader positions to open up, as well as index volatility trader and quant trader jobs. Trading analyst positions are on the rise-a spot dedicated to support volatility arbitrage.
According to Henry Chien, junior analyst for the Tabb Group, a financial markets research and advisory firm, there's sure to be additional VIX products coming down the pike-a good sign for additional job opps. Chien notes, "VIX liquidity's shot up a huge amount. This is really a tool for diversification and hedging. The concept of managing volatility is a popular area in terms of portfolio management." He predicts iShares and other major issuers of ETFs will continue to see a boost in business.
In January,ProShares, announced the launch of the first volatility ETFs-ProShares VIX Short-Term Future (VIXY) and VIX Mid-Term Futures (VIXM) ETFs. Bank of America Merrill Lynch and ETF Securities are partnering on an exchange-traded fund tracking European market volatility, according to <a href=https://www.risk.net/structured-products/news/2029729/baml-etf-securities-launch-etf-track-european-equity-volatility target=_blank.Structured Product News.
As reported on CNBC, the CBOE just announced it's seeking approval for a launch of options on volatility indexes of individual stock and crude oil ETFs. The CBOE is also working with the S&P on the formation of the VIX Network, a global network of exchanges with agreements on the CBOE's VIX methodology, according to a CBOE S&P Press Release. In February, the CBOE announced plans for a launch of futures and options on the CBOE Gold ETF Volatility Index (GVZ), pending regulatory approval.