Volatility Trades Return to ETP Market as Stock Rout Deepens

(Bloomberg) -- So much for a quiet session in U.S. stock markets.

With the Cboe Volatility Index rising the most in more than a week amid an equity-market rout, three of Monday's 10 most-traded exchange-traded products bet on higher volatility, data compiled by Bloomberg show.

The VelocityShares Daily 2x VIX Short Term ETN, ticker TVIX, was the third-most traded ETP of the day, lagging only State Street Corp.'s SPY and the PowerShares QQQ. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) was No. 6, while the ProShares Ultra VIX Short-Term Futures (UVXY) -- which seeks to return 1.5 times a volatility gauge -- saw the seventh-largest volume.

While volumes remain depressed with much of Europe out on holiday, U.S. traders are clearly back at their desks and mean business.

To contact the reporter on this story: Rachel Evans in New York at revans43@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew Dunn, Joanna Ossinger

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