KUALA LUMPUR: Affin Hwang Investment Bank Bhd is has partnered with Cboe Global Markets Inc to introduce access to VIX Futures – standardised, cash-settled contracts that track the Cboe Volatility Index (VIX).
The VIX Futures launch is expected to be followed by the introduction of volatility options later this year.
Affin Hwang CEO Hanif Ghulam Mohammed said it is the first local investment bank to offer clients exposure to a volatility-linked derivative amid heightened uncertainty in the global markets.
“This proposition extends beyond active traders. It reaches premier clients, corporates and treasury desks,” he said at the launch today.
Hanif Ghulam said the investment bank aims to expand its client base by attracting new-to-bank and new-to-product investors, while cross-selling volatility solutions across its futures and equities platforms to deepen client relationships and increase share of wallet.
Affin Hwang is deliberately positioning volatility as a core risk-management tool rather than a short-term trading product, a shift away from purely directional investing as markets become less predictable, he added.
“VIX Futures allow investors to hedge tail risks, diversify portfolios and execute event-driven strategies around key macroeconomic and geopolitical milestones. In short, they provide clarity and control when markets are uncertain.”
Hanif Ghulam said the approach will be education-led and retail-focused aimed at positioning volatility as a key risk-management tool rather than simply tracking US market trends.
“This strategy does two things – it creates attention in a crowded market and it opens meaningful conversations about risk, conversations that lead to deeper engagement across our futures suite.”
Regulators share the same ambition in terms of deepening the market liquidity and expanding the scope of investment for our Malaysian investors, Hanif Ghulam said. “Their support is very encouraging and we look to work forward together with the regulators to expand the tools available for our clients.”
Futures and proprietary trading director Kelvin Ho Jern Yang said the bank currently has fewer than 1,000 active futures clients, compared with several hundred thousand equity investors.
“That is where we can leverage our existing equity client base. If more equity clients participate in futures, there is significant growth potential,” he said.
VIX Futures, which are listed on the Cboe Futures Exchange, track expected market volatility and typically rise during periods of market stress, offering an alternative to traditional strategies focused on asset price movements.
Cboe Global Markets head of Asia-Pacific derivatives sales Sharon Ang said VIX Futures have long been used globally as a tool for managing risk and expressing market views.
“Through our collaboration with Affin Hwang, we are pleased to introduce VIX Futures to the Malaysian market through an investment bank for the first time, supporting the continued growth of the region’s derivatives ecosystem.”
