Jan 7 (Reuters) – The NYSE said on Wednesday a couple of exchanges under its parent company would host U.S. options listings for several benchmark MSCI indexes early this year, subject to regulatory approval.
Listing index options on major exchanges such as the New York Stock Exchange enables providers like MSCI to broaden investor access and strengthen the role of their benchmarks in global markets.
The options of MSCI Emerging Markets Index, MSCI EAFE Index, MSCI ACWI Index, MSCI World Index and MSCI USA Index will be listed on the NYSE Arca and the NYSE American options markets.
“Working with MSCI to broaden the product offering while improving cross-product capital efficiencies, we look forward to enhancing the risk management capabilities offered to global investors with assets tracking these important benchmarks,” said Jon Herrick, chief product officer of the NYSE Group.
Index options are financial derivatives that allow investors to buy or sell a stock market index at a set price before a specified date.
The NYSE parent, Intercontinental Exchange, launched futures tied to MSCI Emerging Markets and MSCI EAFE indexes 16 years ago. The contracts now rank among the world’s top 10 index futures by notional open interest, offering liquid tools for managing equity risk, the exchange said.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)
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