- Cboe MSCI World Index Options (MXWLD), Cboe MSCI ACWI Index
Options (MXACW), and Cboe MSCI USA
Index Options (MXUSA) are available for trading
- MXWLD and MXUSA options are based on 1/100th of index value
- Launch is part of broader initiative to expand Cboe's MSCI
tradable product suite
CHICAGO, March 19,
2024 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe:
CBOE), the world's leading derivatives and securities exchange
network, announced it has launched for trading Cboe MSCI World
Index Options (MXWLD), Cboe MSCI ACWI Index Options (MXACW), and
Cboe MSCI USA Index Options
(MXUSA). The launch is part of Cboe's deepening relationship with
MSCI Inc. (MSCI), a leading provider of critical decision support
tools and services for the global investment community.
The three new MSCI index options are designed to provide a range
of investors exposure to international, developed and emerging
markets and U.S. equity market performance. The new Cboe
MSCI index options can provide pension funds, insurance companies,
and other institutional investors more efficient ways to hedge
their global equity exposure, while minimizing potential tracking
error and currency risk. Additionally, each of MXWLD and MXUSA is
based on a fraction (1/100th) of the value of its underlying index,
making these options more accessible for retail investors.
"As more investors seek global equity exposure, adding three new
options on MSCI's world renowned benchmarks was the natural next
evolution for Cboe's suite of index options products," said
Catherine Clay, Head of Global
Derivatives at Cboe Global Markets. "Whether investors are
looking to hedge their portfolios, generate yields, or make
directional trades, we have seen heightened interest in the
optionality derivatives can provide. These new index options, and
the MSCI volatility benchmark indices launched recently will
provide important tools in helping investors manage their global
exposures. We look forward to building upon our relationship with
MSCI and providing investors the global risk management tools they
need."
For portfolio managers running options overlay strategies, these
new index options are designed to allow investors to expand their
overlay programs to their global portfolio and thus, diversify the
sources of potential income in their portfolio. A potential benefit
of overwriting the newly launched MSCI index options include their
European-style cash settlement, which helps to eliminate risk of
early exercise and physical settlement, two common pain points in
running a yield enhancement strategy.
Cboe initially listed MXACW, MXUSA, and MXWLD with standard
expiration on the third Friday of each month. Additionally, Cboe
plans to list five end-of-week expirations that are expected to
begin trading on March 21, 2024. The
three new Cboe MSCI Index options are available for trading on the
Cboe Options Exchange.
The new index options are in addition to the currently listed
Cboe MSCI tradable products, which include Cboe MSCI EAFE Index
Options (MXEA) and Cboe MSCI Emerging Markets Index Options (MXEF).
Recently, Cboe expanded its suite of volatility indices with the
Cboe MSCI EAFE Volatility Index (VXMXEA) and the Cboe MSCI Emerging
Markets Volatility Index (VXMXEF). Developed using Cboe's
proprietary VIX® Index methodology, these indices are
based on existing MXEA and MXEF options and are designed to provide
a transparent measure of the market's expectation of 30-day implied
volatility by these respective MSCI index option classes. Similar
to the VIX Index, which is designed to reflect investors' consensus
view of future (30-day) expected U.S. stock market volatility, the
new Cboe MSCI Volatility Indices aim to provide comparable measures
for international and emerging equity market volatility.
Cboe and MSCI will be hosting a webinar on the key benefits
and opportunities provided by the new indices options on
Wednesday, March 27. For more
information, visit the MSCI Index Options page on the Cboe
website.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The company is committed to operating a trusted,
inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities,
derivatives, FX, and digital assets, across North America, Europe and Asia
Pacific. To learn more, visit www.cboe.com.
Media
Contacts
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Cboe Analyst
Contact
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Angela
Tu
|
Tim
Cave
|
|
Kenneth Hill,
CFA
|
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+1-646-856-8734
|
+44 (0)
7593-506-719
|
|
+1-312-786-7559
|
|
atu@cboe.com
|
tcave@cboe.com
|
|
khill@cboe.com
|
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SOURCE Cboe Global Markets, Inc.