CBOE Cboe Global Markets Inc

• Cboe^® iBoxx^® $ Emerging Market Bond Index (IEMD) futures to provide exposure to emerging market debt
• Futures expected to begin trading on June 17, subject to regulatory review
• Offering expands Cboe's current credit toolkit, which includes U.S. corporate bond futures and options on futures

CHICAGO, May 29, 2024 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, announced plans to list Cboe^® iBoxx^® $ Emerging Market Bond Index futures (ticker: IEMD) for trading on Cboe Futures Exchange, LLC (CFE) beginning on June 17, subject to regulatory review. The IEMD futures will be based on the S&P Dow Jones Indices' iBoxx^® USD Liquid Emerging Market Sovereigns & Sub-Sovereigns Index (ticker: IBXXEMLQ).

IEMD futures are designed to offer investors exposure to U.S. dollar denominated bonds issued by governments or sub-sovereign issuers from emerging market countries. For current and potential emerging market debt investors, IEMD futures could be used to hedge existing exposures, implement relative value strategies against other fixed income instruments and manage interest rate and credit risk. IEMD futures will be exchange-traded and centrally cleared, which will help provide operational simplicity and limit counterparty risk compared to over-the-counter instruments.

As of April 30, 2024, the iBoxx® USD Liquid Emerging Market Sovereigns & Sub-Sovereigns Index had 535 constituents across 46 emerging market countries, including Mexico, Argentina and the United Arab Emirates, and an estimated aggregate amount outstanding of $1.03 trillion. The index methodology is designed to include bonds with at least $1 billion amount outstanding at rebalancing, and does not include any country that is in default on its external debt or subject to financial sanctions by the United States or European Union.   

"We are excited to build upon Cboe's ongoing collaboration with S&P Dow Jones Indices and expand Cboe's credit market offerings to include emerging market futures," said Rob Hocking, Senior Vice President and Head of Product Innovation at Cboe Global Markets. "Cboe changed the way investors traded volatility 20 years ago with the launch of VIX futures, and today we continue to innovate and strategically offer new ways to manage risk across asset classes. Whether investors or fund managers are looking to hedge current positions or gain broad exposure to the market for bonds issued by governments or sub-sovereign issuers from emerging market countries, IEMD futures are designed to provide that exposure in a U.S. regulated and capital efficient manner."

"S&P Dow Jones Indices' iBoxx® USD Emerging Markets Broad Index Series was launched in January 2024 to offer global investors an independent market performance gauge to support their renewed and growing interest in shorter duration, higher yielding fixed income exposures to developing markets for risk management and diversification purposes," said Frans Scheepers, Global Head of Fixed Income, Currency and Commodities Products at S&P Dow Jones Indices. "S&P DJI is pleased to license the iBoxx® USD Liquid Emerging Market Sovereigns & Sub-Sovereigns Index, which was launched in March 2024, and is designed specifically for use with tradable products to Cboe, further strengthening the liquid ecosystem of financial products that are tracking our innovative and pioneering fixed income benchmarks."

IEMD futures will be cash-settled and available to trade at nearly 24-hours per weekday, allowing investors across the globe to manage risk more efficiently. CFE plans to list for trading up to four near-term serial contract months and four contract months on the March quarterly cycle for IEMD futures.

In addition to IEMD futures, CFE currently offers investors exposure to high yield and investment grade U.S. corporate debt through its Cboe^® iBoxx^® iShares^® Bond Index futures and options on futures offering. The products are designed to allow users to hedge and mitigate corporate bond credit risk with exchange traded, centrally cleared products.

To learn more about CFE and its offerings, visit Cboe U.S. Futures Exchange Overview.

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

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Cboe^®, CFE^®, VIX^®, and Cboe Global Markets^® are registered trademarks and Cboe Futures Exchange^SM is a service mark of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners.

Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts. Certain risks associated with options, futures, and options on futures and certain disclosures relating to information provided regarding these products are also highlighted at https://www.cboe.com/us_disclaimers. 

Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Investors should undertake their own due diligence regarding their securities, futures and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein. Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.

The iBoxx iShares $ High Yield Corporate Bond Index and the iBoxx iShares $ Investment Grade Corporate Bond Index ("iBoxx iShares $ Corporate Bond Indices") and the iBoxx^® USD Liquid Emerging Market Sovereigns & Sub-Sovereigns Index are products of S&P Dow Jones Indices LLC or its affiliates or licensors ("S&P DJI") and have been licensed for use by Cboe Exchange, Inc. iBoxx^®, S&P^®, S&P 500^®, SPX, US 500, The 500, DSPX, DSPBX, iTraxx, CDX and Dividend Aristocrats^® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by Cboe Exchange, Inc. Cboe^® iBoxx^® iShares^® $ High Yield Corporate Bond Index futures and options on futures, Cboe^® iBoxx^® iShares^® $ Investment Grade Corporate Bond Index futures and options on futures, and Cboe^® iBoxx^® $ Emerging Market Bond Index futures are not sponsored, endorsed, sold, or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the iBoxx iShares $ Corporate Bond Indices or the iBoxx^® USD Liquid Emerging Market Sovereigns & Sub-Sovereigns Index. 

The iBoxx^® iShares^® $ High Yield Corporate Bond Index and the iBoxx^® iShares^® $ Investment Grade Corporate Bond Index (the "Indexes"), futures contracts on the Indexes and options on futures contracts on the Indexes ("Contracts") are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, "BlackRock"). BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG, LQD or any subset of fixed income securities.

BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise the Indexes ("Underlying Data"). BlackRock is not responsible for and has not participated in the determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or in the determination or calculation of the equation by which the Contracts are to be converted into cash (if applicable). BlackRock has no obligation or liability in connection with the administration or trading of the Contracts. BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto.

BlackRock makes no warranty, express or implied, as to results to be obtained by S&P DJI, the parties to the Contracts or any other person with respect to the use of the Underlying Data or any data included therein. BlackRock makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Data or any data included therein. Without limiting any of the foregoing, in no event shall BlackRock have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) resulting from the use of the Underlying Data or any data included therein, even if notified of the possibility of such damages.

iShares^® is a registered trademark of BlackRock Fund Advisors and its affiliates.

Cautionary Statements Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively;  our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot crypto market, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.

We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

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SOURCE Cboe Global Markets, Inc.