Cboe Global Markets and Metaurus Advisors, LLC Announce Plans to Launch Three New Innovative Equity Indices
Cboe Global Markets and Metaurus Advisors, are partnering to launch three new US equity indices: the Cboe US Large Cap 100 Index, the Cboe US Large Cap Lead 50 Index, and the Cboe US Large Cap Lag 50 Index. These indices leverage Cboe's derivatives-based indexing capabilities and Metaurus' Dynamic Reassignment technology. Plans include developing tradable futures products based on the indices, subject to regulatory review.
Leveraging combined strengths of Cboe and Metaurus for innovative equity indices
Plans to develop tradable futures products based on indices
Collaboration furthers Cboe's global index business and builds on proven track record in creating innovative index offerings
Regulatory review needed for tradable futures products
Potential risks associated with market volatility affecting index performance
- Cboe and Metaurus collaborate to develop three new US equity indices: the Cboe US Large Cap 100 Index, the Cboe US Large Cap Lead 50 Index, and the Cboe US Large Cap Lag 50 Index
- Leverages combined strengths of Cboe's derivatives-based indexing capabilities and Metaurus' Dynamic ReassignmentSM technology
- Plans to develop tradable futures products based on indices, subject to regulatory review
The Cboe US Large Cap 100 Index is designed to be an equal-dollar-weighted index comprised of 100 of the largest US stocks by market capitalization, rebalanced quarterly, that replicates the sector capitalization weightings of the largest companies listed on US exchanges. The Cboe Lead 50 and Cboe Lag 50, both equal-dollar-weighted indices, are designed to measure the total returns of the top 50 and bottom 50 performing companies, respectively, within the Cboe US Large Cap 100 Index on a quarterly basis.
In addition, under an agreement between Cboe Exchange, Inc. and Metaurus, Cboe has the exclusive rights to use aspects of Metaurus' patent application to construct indices based on US equity securities, including the Cboe US Large Cap 100, Cboe Lead 50, and Cboe Lag 50 indices. The latter two indices are designed to provide real-time insight as to how returns of the top 50 and bottom 50 individual stocks that make up the Cboe US Large Cap 100 vary over a fixed quarterly timeframe and are expected to be a gauge for realized dispersion, a key component to portfolio returns.
The collaboration furthers Cboe's growing global index business and builds on Cboe's proven track record in creating and disseminating some of the industry's most innovative index offerings, including the Cboe Volatility Index® (VIX® Index), and its suites of Strategy Performance Benchmark indices and Target Outcome indices.
"These indices will utilize Cboe's world-class index innovation capabilities, combined with the simple, yet powerful, patent-pending technology developed by Metaurus, to help traders further understand how individual stocks contribute to the overall performance of the broader market," said Rob Hocking, Senior Vice President and Head of Product Innovation at Cboe Global Markets. "Dispersion is a critical aspect of market return, and Cboe is pleased to collaborate with Metaurus to provide the marketplace with indices that can be used as a measure of return dispersion on a real-time basis."
"The team at Metaurus has been in the business of financial engineering for over 35 years," said Richard Sandulli, Co-CEO of Metaurus. "Our Dynamic ReassignmentSM technology and collaboration with Cboe allow us to work with the leading derivatives exchange to develop new, cutting-edge solutions and bring them to commercial viability. The Cboe US Large Cap 100, the Cboe Lead 50, and the Cboe Lag 50 indices build on our collective expertise in bringing novel investment products to the broader market."
Cboe Labs, Cboe's product innovation hub, plans to develop tradable futures products based on the Cboe Lead 50 and the Cboe Lag 50 indices to be listed on Cboe Futures Exchange, subject to regulatory review.
About Cboe Global Markets
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
About Metaurus Advisors, LLC
Metaurus Advisors LLC is an SEC-registered investment advisor whose partners have decades of experience developing cutting-edge derivative and structured products. Metaurus' growing IP portfolio is the basis for multiple strategies utilized in both public and private investment formats. Metaurus is committed to helping investors unlock the sources of investment return. Please visit www.Metaurus.com for more information.
Media Contacts | Cboe Analyst Contact | ||||
Angela Tu (Cboe) | Sean Dillon (Metaurus) | Kenneth Hill, CFA | |||
+1-646-856-8734 | +1-908-305-4417 | +1-312-786-7559 | |||
atu@cboe.com | SDillon@Metaurus.com | khill@cboe.com | |||
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX® are registered trademarks of Cboe Exchange, Inc. or its affiliates. All other trademarks and service marks are the property of their respective owners.
Neither Cboe Global Markets, Inc. and its affiliates nor Metaurus recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with Metaurus. 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. It is not possible to invest directly in an index. 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.
Neither Cboe Global Markets, Inc. and its affiliates nor Metaurus make any warranty or guarantee, expressed or implied, including, without limitation, of merchantability, fitness for a particular purpose or any use whatsoever, 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 indices referenced in this press release to track the performance of their respective securities, generally, or the performance of the indices referenced in this press release or any subset of their respective securities, and shall not in any way be liable for any inaccuracies, errors, or omissions.
There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/us_disclaimers/.
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.
Cautionary Statements Regarding Forward-Looking Information
Certain information contained in this press 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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SOURCE Cboe Global Markets, Inc.
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