On Tuesday, B3 and S&P Dow Jones, leveraging Cboe Global Markets’ expertise, launched the VXBR, an index that measures market volatility in Brazil.
It mirrors the U.S. VIX, showing market fears and likely swings. The U.S. VIX uses 30-day S&P 500 options to predict near-term market moves.
High interest in these options signals expected jumps in volatility. They help investors avoid losses or chase gains.
The VXBR focuses on 30-day forecasts using Ibovespa options. Henio Scheidt, from B3, says the VXBR adds a crucial tool for assessing market risks.
Thanks to a surge in options trading, B3 could launch this index, bringing a proven method to Brazil.
Trading times for the VXBR match the regular market, from 10:30 a.m. to 5:00 p.m.
Catherine Clay of Cboe says this step forward shows the VIX’s global relevance and its role in refining financial systems.
B3 and S&P Launch ‘Brazilian VIX,’ the Country’a New Volatility Index
In the U.S., the VIX helps gauge market mood, a role the VXBR will also play in Brazil.
When markets wobble or economies falter, volatility rises. But if stocks are steady, the VIX often drops.
B3’s analysis indicates the VXBR will reflect similar trends. This move proves the VIX’s worldwide value and enhances the global financial landscape.