VIX contract size

[cate]

Hi,

Until yesterday, the minimum size for trading the VIX via either the Volatility Index £1 or Volatility Index 1 euro was one contract. But this morning I found the minimum size was 100 contracts. Is this a permanent change? And is there anywhere we can see in advance when these changes are being planned?

Thanks,

Cate

[cate]

I realise I should probably have tagged someone from IG when I asked this question. Maybe @MongiIG?

Thanks!

Cate

[AshishIG]

On 02/08/2023 at 18:48, cate said:

Hi,

Until yesterday, the minimum size for trading the VIX via either the Volatility Index £1 or Volatility Index 1 euro was one contract. But this morning I found the minimum size was 100 contracts. Is this a permanent change? And is there anywhere we can see in advance when these changes are being planned?

Thanks,

Cate

Hi @cate,

Starting from now, the minimum will be 100. The previous minimum of 1 was considered too small and has now been increased. 

All the best,
AshishIG

[cate]

Thanks @AshishIG

Two questions:

1. Is there anywhere IG announce that they're planning to make these changes? It would be nice to know in advance when a big change like this is coming.

I had a strategy that depended on being able to trade lots of small VIX positions, so that I can keep averaging my position as spot moves. It's not a big deal this time, but I'm worried if I'm expecting to use an instrument to hedge and suddenly without warning it might become much more expensive to trade. 

2. Is there any risk that IG will close out the positions I currently hold based on the old position sizes? Or does the new size limit only apply to new positions that get opened?

Thanks,

Cate

[AshishIG]

15 hours ago, cate said:

Thanks @AshishIG

Two questions:

1. Is there anywhere IG announce that they're planning to make these changes? It would be nice to know in advance when a big change like this is coming.

I had a strategy that depended on being able to trade lots of small VIX positions, so that I can keep averaging my position as spot moves. It's not a big deal this time, but I'm worried if I'm expecting to use an instrument to hedge and suddenly without warning it might become much more expensive to trade. 

2. Is there any risk that IG will close out the positions I currently hold based on the old position sizes? Or does the new size limit only apply to new positions that get opened?

Thanks,

Cate

Hi @cate, thank you for your inquiries. We recognize the significance of informing clients ahead of changes, particularly ones of this nature. We apologize for the oversight in this instance. Your feedback is important to us, and we have conveyed it to the appropriate departments for review and potential improvements. Regarding your current positions, rest assured that no alterations will be made, as the adjustments are exclusive to new positions.

All the best,
AshishIG

[cate]

@AshishIG Thank you!