ICE Expands Equity Derivatives Complex With the Launch of MSCI® Index Total Return Futures
March 11 2024 - 7:00AM
Business Wire
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global
provider of technology and data, and home to the most liquid
markets for trading MSCI® futures, today announced the
launch of MSCI® Index Total Return Futures (TRFs).
ICE’s MSCI® TRFs offer investors a way to gain exposure
to MSCI’s flagship indices: MSCI EAFE Index, MSCI Emerging Markets
Index, MSCI USA Index and MSCI World Index. The TRF contracts serve
as an exchange listed alternative to over-the-counter total return
swaps that seek to replicate the performance of MSCI’s indices in a
more capital-efficient and transparent way.
The contracts use the underlying U.S. funding rate SOFR (Secured
Overnight Financing Rate) which measures the cost of overnight cash
borrowing. Contracts are available to trade out the curve to 2033,
with quarterly and yearly expiries.
“ICE’s markets account for over 70% of global MSCI futures
trading by volume, making ICE the natural home for customers to
trade MSCI Total Return Futures alongside our deeply liquid suite
of MSCI Futures,” said Caterina Caramaschi, Vice President,
Financial Derivatives at ICE. “We have worked directly with the
market to design the TRF contracts, which allow clients to benefit
from trading in a U.S. time zone, against the closing MSCI index
level and report the trade on the same day, utilizing the truly
global nature of ICE’s equity derivatives offering.”
ICE offers the most liquid futures on MSCI EAFE, MSCI Emerging
Markets, MSCI ESG and MSCI Climate indices, providing participants
around the world with a set of tools to manage equity risk. In
2023, the average daily volume for ICE’s MSCI complex was
approximately 214,000 contracts, equal to an estimated $14 billion
of notional value. ICE MSCI futures traded over 53 million
contracts in 2023.
“Goldman Sachs is excited about the launch of ICE MSCI Index
TRFs. We expect it to be an excellent product for clients seeking a
cost-effective solution to access a range of flagship MSCI
indices,” said Daria Sentuc, Managing Director, Emerging Markets
Global Synthetics at Goldman Sachs. “As a long-established provider
of liquidity across the MSCI complex, we look forward to supporting
growth in this new product.”
“We’re pleased to license ICE as they expand their TRF segment
to include MSCI indices,” said George Harrington, Managing
Director, Global Head of Fixed Income and Derivatives at MSCI.
“This reflects the increasing demand for new products linked to
MSCI’s global benchmarks.”
For more information, please visit:
www.ice.com/equity-index/msci.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks that
connect people to opportunity. We provide financial technology and
data services across major asset classes helping our customers
access mission-critical workflow tools that increase transparency
and efficiency. ICE’s futures, equity, and options exchanges
– including the New York Stock Exchange – and clearing
houses help people invest, raise capital and manage risk. We
offer some of the world’s largest markets to trade and clear energy
and environmental products. Our fixed income, data services
and execution capabilities provide information, analytics and
platforms that help our customers streamline processes and
capitalize on opportunities. At ICE Mortgage Technology, we
are transforming U.S. housing finance, from initial consumer
engagement through loan production, closing, registration and the
long-term servicing relationship. Together, ICE transforms,
streamlines and automates industries to connect our customers to
opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 – Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2023, as
filed with the SEC on February 8, 2024.
Category: EXCHANGES
ICE- CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20240311435201/en/
ICE Media Contact: Jess Tatham jess.tatham@ice.com
+44 7377 947136 ICE Investor Contact: Katia Gonzalez
katia.gonzalez@ice.com (678) 981-3882
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