Cboe Global Markets and MSCI Inc. Expand Relationship, Extend Licensing Agreement Through 2031
Cboe Global Markets (CBOE) and MSCI Inc. have signed a licensing agreement that strengthens their collaboration and extends Cboe's rights to offer options trading on MSCI global indices through 2031. This agreement builds on their history of partnership and introduces opportunities to pursue new initiatives across capital markets, enhancing product offerings. Cboe will maintain rights to develop index options on key MSCI indices and will also be able to offer options on four new ESG indices. The collaboration aims to drive innovation and provide better tools for market participants, reinforcing Cboe's position in the derivatives market.
- Cboe and MSCI's agreement extends licensing for options trading on MSCI indices through 2031.
- Cboe will develop index options for additional MSCI ESG indices, enhancing product offerings.
- Partnership aims to drive innovation in capital markets and expand the MSCI-Index options product suite.
- None.
CHICAGO, Oct. 21, 2021 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, and MSCI Inc., a leading provider of critical decision support tools and services for the global investment community, today announced they have signed a licensing agreement that extends and broadens their strategic relationship.
The agreement builds on many years of successful collaboration between the two companies and extends Cboe's rights to offer options trading on MSCI global indices through 2031. Significantly, the agreement also expands Cboe's and MSCI's relationship, creating opportunities for the companies to work together to pursue other strategic initiatives across capital markets, and combine their complementary strengths and visions to help drive future innovation for market participants globally.
"We have valued our strong partnership with MSCI for many years and are pleased to expand our relationship through this strategic agreement," said Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets. "Cboe and MSCI share a common vision to help market participants protect capital, transfer risk and generate wealth to create a sustainable financial future. Our expanded relationship with MSCI opens up a world of opportunities for new products, services and solutions, and we look forward to working together to further serve the global investment community."
The two companies have collaborated successfully to offer options trading on MSCI global indices for many years. Under the agreement, initially signed in 2014, Cboe will continue to have the rights in the U.S. to develop and list index options on the following six MSCI indices: the MSCI EAFE Index (MXEA), MSCI Emerging Markets Index (MXEF), MSCI All Country World Index, MSCI USA Index, MSCI World Index and the MSCI ACWI ex-USA Index.
In addition, the agreement enables Cboe to offer index options, subject to regulatory approval, on four additional MSCI ESG indices: the MSCI Emerging Markets ESG Leaders Index, MSCI EAFE ESG Leaders Index, MSCI USA ESG Leaders Index and the MSCI World ESG Leaders Index.
"This agreement represents a huge innovation for the derivative market," said Henry Fernandez, Chairman and Chief Executive Officer of MSCI. "It will increase access to products our clients need while helping us build a stronger financial system. It also lays the groundwork for additional collaboration between MSCI and Cboe in the years ahead. We are excited to continue growing our strategic relationship."
Cboe is currently the only U.S. exchange that offers options trading on MSCI indices. In this newly strengthened relationship, Cboe and MSCI plan to leverage their combined capabilities to further grow the MSCI-Index options product suite and help drive greater volume and liquidity through enhanced education, content and services for customers. Further, the companies plan to explore opportunities beyond traditional equity derivatives products to help market participants navigate the "next generation of risk" resulting from structural shifts in markets and society.
In addition to index options, Cboe offers a series of BuyWrite and PutWrite strategy benchmark indices based on the MSCI EAFE Index and MSCI Emerging Markets Index. As part of its continued relationship with MSCI, Cboe also expects to develop additional strategy benchmark and volatility indices over time for both indices.
Options trading on the MSCI EAFE Index and MSCI Emerging Markets Index – the world's pre-eminent benchmarks for measuring international and emerging market equity performance, respectively – offer investors the opportunity to better manage global equity exposure, help mitigate portfolio risk and potentially generate additional options premium income. Trading in options on other MSCI indices offers opportunities to hedge a variety of different exposures, as well. For additional information on Cboe's MSCI-Index options and related offerings, visit www.cboe.com/MSCI.
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 and FX, across North America, Europe and Asia Pacific. To learn more, visit www.cboe.com.
About MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process.
Media Contacts | Analyst Contact | |
Angela Tu (Cboe) | Melanie Blanco (MSCI) | Kenneth Hill, CFA (Cboe) |
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Options involve risk and are not suitable for all market participants. Prior to buying or selling an option, a person should review the Characteristics and Risks of Standardized Options (ODD), which is required to be provided to all such persons. Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606.
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