Anxiety Grips Emerging-Market VIX in Biggest Jump on Record
- CBOE's gauge of options prices jumps 44% amid selloff
- Emerging-market ETF falls 3.7% to the lowest since 2009
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The rout in markets from China to South Africa triggered a record jump in a gauge of options prices on developing-nation stocks as investors purchased contracts to protect against future declines.
The benchmark -- called the CBOE Emerging Markets ETF Volatility Index -- more than tripled as trading began at 9:30 a.m. in New York. The selloff in developing nations took a turn for the worse on Monday as Chinese equities fell the most since 2007. The measure jumped 66 percent to 55.17 at the close on Monday for the biggest gain on record.