Pure Volatility with JJ Kinahan SVP, CBOE Global Markets, Aug. 31, 2026

JJ Kinahan, Senior Vice President at CBOE Global Markets, discusses the expanding opportunities for retail traders and international investors in this comprehensive conversation from the CBOE trading floor. Kinahan highlights the growing sophistication of Latin American markets, particularly Brazil and Mexico, noting that investors there are actively seeking education about options, stocks, and cryptocurrency. He emphasizes that CBOE's newly launched prediction markets through XSPBX, a one-tenth size S&P 500 product, offer retail participants a more accessible way to express daily market views rather than committing to longer-term positions. The firm plans to expand these offerings to include Dow Jones, Russell, and Mag 10 products while developing corporate KPI contracts that will allow trading on specific company metrics like earnings per share and revenue.

On market conditions, Kinahan addresses the persistent puzzle of relatively low volatility despite geopolitical tensions, with the VIX holding between 15 and 20. He attributes this stability to strong corporate earnings and market confidence in eventual resolution of international conflicts. The conversation turns to interest rates, where Kinahan notes the market pricing in a 63 percent probability of a rate hike at the upcoming September Federal Reserve meeting. He identifies housing affordability as a significant concern for younger investors globally, while pointing to crude oil prices as a key inflation indicator given their immediate impact on consumer spending. Kinahan expresses confidence that prediction markets and corporate KPI products will follow the trajectory of zero-day options, beginning with retail adoption before expanding to institutional investors.