Miami International Holdings, Inc. (MIH), owner of Miami International Securities Exchange, LLC, Minneapolis Grain Exchange, LLC (MGEXTM) and The Bermuda Stock Exchange (BSXTM) and T3 Index today jointly announced the launch of two new ConvexityShares ETFs, designed to provide investors with access to a new product designed to manage volatility exposure.
ConvexityShares ETFs offer exposure to SPDR S&P 500 ETF (SPY) volatility and track the SPIKES Futures Short-Term Index (SPKF), which uses input prices of the front two SPIKES Futures contracts to measure a daily rolling position to provide exposure to the front end of the SPIKES Futures curve.
The ConvexityShares ETFs include the ConvexityShares 1x SPIKES Futures ETF (Ticker: SPKX) and the ConvexityShares Daily 1.5x SPIKES Futures ETF (Ticker: SPKY). Each of these ETFs will be listed for trading on NYSE Arca Inc.
“MIAX is pleased to partner with T3 Index to provide a new way to trade volatility,” says Thomas P. Gallagher, Chairman and CEO of MIH. “The launch of ConvexityShares ETFs is an important milestone for the SPIKES Volatility Products franchise, bringing much-needed competition to the marketplace and providing a powerful tool to help market participants manage risk and capitalize on changes in market volatility.”
“MIAX and T3 Index have developed a strong partnership as we developed and launched our portfolio of SPIKES Volatility Products,” says Joseph W. Ferraro III, President of MIAX Futures. “This launch expands our volatility trading ecosystem and showcases our commitment to offer new and innovative products to the trading community.”
The firm writes that the launch of the ConvexityShares ETFs offers traders and investors a new, alternative tool to hedge and capitalise on volatility and is an important enhancement to the current SPIKES Volatility Products portfolio that T3 and MIAX have jointly created since launching the SPIKES Volatility Index (Ticker: SPIKE) in 2019. The SPIKES index is a measure of the expected 30-day volatility in SPY and the basis for SPIKES Volatility Products.
“In an increasingly volatile and complex market, the launch of ConvexityShares ETFs provides more choice and opportunity in how traders hedge volatility,” says Simon Ho, CEO of T3 Index. “Both the SPIKES Volatility Index and the SPIKES Futures Short-Term Index seek to offer new indexes that are reliable, accurate and an alternative to what’s currently available for volatility traders.”