Archive · 31 Jul 2025
NSE Considers Reintroducing VIX Futures for Derivatives Trading
The National Stock Exchange (NSE) is thinking about bringing back VIX futures, which are like bets on how jumpy the stock market is.
They want to offer more ways for people to trade, similar to what's done in other countries.
However, some people aren't sure it'll work because the Indian version of the VIX doesn't always move the same way as the stock market.
Plus, the previous version didn't have many people trading it.
Some people think the size of the contracts and how long they last could make it less attractive to traders.
They are also limited to just a few weeks of trading compared to others that offer more.
NSE is considering relaunching futures contracts on India VIX to diversify its derivatives offerings.
Market participants question the viability of the VIX futures due to the index's behavior.
India VIX futures were previously traded until 2018 but were discontinued due to low volumes.
Experts cite challenges including a small trading range for India VIX and higher contract sizes.
Some believe that the limited time to hedge exposure could impact the product.
- Who
- The National Stock Exchange (NSE)
- What
- The NSE is considering relaunching India VIX futures contracts.
- When
- The NSE is considering the relaunch at a suitable time.
- Where
- India
- Why
- To diversify derivatives offerings and potentially provide hedging opportunities.
Arguments for VIX Futures
Arguments Against VIX Futures
Viability
Arguments for VIX Futures
VIX futures can serve as an interesting derivatives product.
Arguments Against VIX Futures
It may not garner much attraction given the viability of the index.
Volatility Index Behavior
Arguments for VIX Futures
The product can help traders as a hedging opportunity against sudden changes in market volatility.
Arguments Against VIX Futures
India VIX has traded only in a small range despite event-related market movements.
- Exchange
- National Stock Exchange (NSE)
- Product
- India VIX futures contracts
- Purpose
- Hedging against market volatility
- Previous Trading
- Until 2018