Why Asian asset owners are leery of volatility derivatives

Despite the rise in market volatility in Asia and other markets, the use of volatility index (Vix) futures has yet to attract much investment from regional institutional investors. Many of the asset owners blame the fact the derivatives trade in a complex manner and rely heavily on market speculation, while noting that there are cheaper and simpler ways to hedge against market movements.  Erik Norland, London-based executive director and senior economist at CME Group, told Asian…