VIX Futures Arrive in Malaysia: Affin Hwang IB & Cboe Shake Up the Market

Affin Hwang Investment Bank Bhd has taken a new step in expanding local investors access to global markets by partnering with Cboe Global Markets Inc to introduce VIX® Futures in Malaysia. The product, which is listed on the Cboe Futures Exchange (CFE®), marks the first time a Malaysian bank-backed investment bank has brought this type of volatility-linked instrument to the local market.

The move builds on Affin Hwang IBs push into foreign futures, which began in 2023 through collaborations with major global exchanges such as CME Group. With the launch of VIX® Futures, the investment bank is positioning itself as a bridge between international market innovation and Malaysian investors looking for more sophisticated portfolio tools.

Affin Hwang Investment Bank chief executive officer Hanif Ghulam Mohammed said VIX® Futures are standardised, cash-settled contracts that allow investors to manage and hedge against expected market volatility. Unlike traditional products that rely purely on market direction, VIX® Futures are designed to benefit from spikes in volatility, which often occur during periods of economic uncertainty or major geopolitical events.

He explained that the introduction of VIX® Futures reflects a shift in how investors can approach the market. Instead of relying solely on buying and selling equities, investors now have an additional avenue to manage risk and diversify their strategies. Hanif added that this launch is only the beginning, with more Cboe-related products, including volatility options, expected to be introduced in the future.

According to Hanif, volatility has become an increasingly important component of modern investing, especially as traditional index trading becomes less attractive in certain market conditions. VIX® Futures offer investors a transparent, exchange-traded way to hedge equity positions, manage tail risks and execute event-driven strategies around key macroeconomic or geopolitical developments.

He also highlighted that VIX® Futures are widely traded internationally on Cboe, providing deep liquidity. Affin Hwang IB hopes that participation in these global derivatives will not only benefit local and offshore investors, but also create positive spillover effects for Bursa Malaysias derivatives market over time.

Education, Hanif stressed, remains a core focus of the banks strategy. Rather than simply offering new products, Affin Hwang IB aims to equip investors with a better understanding of how volatility instruments work and how they can be used responsibly within a portfolio. The bank plans to roll out ongoing education programmes to help investors become more familiar with these tools.

“We dont just want to sell products,” Hanif said. “We want to educate our clients on the tools available to them, so they can make better-informed decisions and manage their portfolios more effectively.”

With the introduction of VIX® Futures, Affin Hwang IB is signaling a broader shift towards providing Malaysian investors with more diverse, globally aligned investment solutions, while emphasising risk management and long-term portfolio resilience.