Attention Turns To German, Italian Elections As VSTOXX Solidifies Its Status As Event Risk Barometer

Despite the French elections coming to a close in June, liquidity in the Euro Stoxx 50 Volatility Index (VSTOXX) has continued to remain strong. The VSTOXX has this year solidified its position as the most efficient underlying to trade event risk in Europe, made evident by increased appetite in recent weeks in V2X Sept. futures as expectations increased for an Italian General Election in October. Georgia Reynolds sets out how market participants are progressively identifying the benefits of the VSTOXX when trading around events and why heightened liquidity in the underlying is here to stay.