CBOE's VIX Jumps 20% to 28.57; Deutsche Bank Names Cboe Top Pick
CBOE's VIX spiked 20% to 28.57 on March 6, its highest since October 2025, as WTI rose 10.6% to $89.61 and Brent climbed 7.3% to $91.67. Deutsche Bank named Cboe Global Markets its top near-term exchange pick, citing that elevated volatility and two 2026 Fed rate cuts will boost trading volumes and data fees.
1. VIX Hits Highest Level Since October 2025
On March 6, the CBOE Volatility Index surged 20% to an intraday high of 28.57, marking its strongest reading since the 28.99 peak on October 17, 2025. Heightened geopolitical tensions in the Middle East drove WTI crude up 10.6% to $89.61 and Brent up 7.3% to $91.67, fueling demand for volatility hedges.
2. Revenue Boost from Elevated Volatility
Cboe Global Markets stands to benefit as spikes in volatility typically lift trading volumes across equity and index options, driving higher derivatives transaction fees and increased subscriptions for real-time market data. Volatility-driven hedging demand also supports revenue growth in clearing and risk management services.
3. Deutsche Bank Upgrade and Outlook
Deutsche Bank upgraded Cboe Global Markets to its top near-term exchange pick, forecasting that sustained volatility and two anticipated Fed rate cuts in the third and fourth quarters of 2026 will further amplify trading activity and data service consumption. The bank projects that these factors will underpin stronger revenue and margin expansion late in the year.