- New derivatives-based strategy benchmarks seek to use index options to manage risk and volatility, and to enhance investment yield
- New initiative further expands Cboe's MSCI index product family
CHICAGO, March 13, 2019 /PRNewswire/ -- Cboe Global Markets, Inc. (CBOE), one of the world's largest exchange holding companies, announced today it has entered into an agreement with MSCI Inc. (MSCI), a leading provider of indexes and critical investment decision support tools and services, to launch a suite of derivatives-based strategy performance benchmark and volatility indexes based on the MSCI Emerging Markets Index (MXEF) and the MSCI EAFE Index (MXEA), key indexes for investors seeking exposure to international and emerging markets.
Cboe's benchmark indexes are designed to help investors track the performance of investment strategies that use options or volatility products to help manage risk, reduce volatility and enhance yield.
The new Cboe-MSCI benchmarks are expected to be designed in the same manner as the widely followed derivatives-based strategy performance benchmark and volatility indexes currently available on Cboe's S&P Dow Jones and FTSE Russell derivatives index products. BuyWrite, PutWrite and Volatility indexes are being developed for both MXEF and MXEA. Cboe may develop up to 50 strategy benchmark and volatility indexes over time.
"MSCI is a key index partner and Cboe is pleased to expand its relationship through this agreement, which will be an important step in the further growth of the MSCI-related index suite at Cboe," said John Deters, Chief Strategy Officer and Head of Multi-Asset Solutions, Cboe Global Markets. "Cboe continues to define index options and volatility trading with innovative products and trading solutions. We believe these new Cboe-MSCI benchmarks will serve as important tools for investors seeking to implement derivatives-based strategies and improve risk-adjusted returns within a portfolio."
"Investors are increasingly looking for different ways to efficiently gain exposure to the global equity markets in their portfolios, while managing the inherent risk and volatility that may impact returns," said George Harrington, Global Head of Futures and Options Licensing at MSCI. "We are pleased to continue working with Cboe to grow their MSCI product suite and help investors manage and measure their derivatives-based strategy performance to help accomplish this."
The MSCI Emerging Markets Index (MXEF) captures large- and mid-cap representation across 23 Emerging Markets (EM) countries. With more than 800 constituents, the index covers approximately 85 percent of the free float-adjusted market capitalization in each country.
The MSCI EAFE Index (MXEA) is recognized as the pre-eminent benchmark in the United States to measure international equity performance. It comprises the MSCI country indexes that represent developed markets outside of North America: Europe, Australasia and the Far East. The MSCI EAFE Index is calculated in U.S. dollars on a real-time basis and disseminated every 60 seconds during market trading hours.
For more information on Cboe options on MSCI Indexes, visit www.cboe.com/MSCI.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years of expertise in research, data and technology, MSCI powers better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. MSCI creates industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.
About Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (CBOE) is one of the world's largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. The company is committed to relentless innovation, connecting global markets with world-class technology, and providing seamless solutions that enhance the customer experience.
Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), the world's barometer for equity market volatility.
Cboe's trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe. In addition, the company is one of the largest stock exchange operators in the U.S. and a leading market globally for ETP trading.
The company is headquartered in Chicago with offices in Kansas City, New York, London, San Francisco, Singapore, Hong Kong and Quito, Ecuador. For more information, visit www.cboe.com.
Cboe®, VIX® and Cboe Volatility Index® are registered trademarks and Cboe Global MarketsSM is a service mark of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners. MSCI® and the MSCI index names are service marks of MSCI Inc. or its affiliates and have been licensed for use by Cboe Exchange, Inc. MSCI does not sponsor, promote or market investment products based on the MSCI indexes and will not have any liability with respect thereto.
Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities or investments, or third-party products or services. Investors should undertake their own due diligence regarding their securities 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 in any jurisdiction where the offer or solicitation would be unlawful under the securities 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.
Cboe Global Markets, Inc. and its affiliates, to the maximum extent permitted by applicable law, make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the Cboe benchmark and volatility indexes and MSCI indexes to track the performance of the various strategies, and shall not in any way be liable for any inaccuracies or errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the MSCI indexes and shall not in any way be liable for any inaccuracies or errors.
Certain information contained in this news release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.
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