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ICE Expands Equity Derivatives Complex With the Launch of FTSE® 100 Index Total Return Future
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
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Rhea-AI Summary
Intercontinental Exchange (NYSE: ICE) announced plans to launch a FTSE® 100 Index Total Return Future (TRF) on November 14, 2022, pending regulatory approval. The TRF aims to provide cost-efficient exposure to the FTSE® 100 index, allowing participants to manage market and dividend risks without directly owning the underlying assets. ICE's FTSE® franchise boasts over £180 billion in notional open interest and serves more than 170 companies across 17 countries. The average daily volume for ICE's FTSE® complex has increased by 8% in 2022, reflecting strong market engagement.
Positive
Launch of FTSE® 100 Index Total Return Future on November 14, 2022, enhancing product offerings.
FTSE® franchise has over £180 billion in notional open interest, indicating strong market demand.
Average daily volume in FTSE® products has risen by 8% in 2022, showcasing increased trading activity.
Negative
None.
LONDON--(BUSINESS WIRE)--
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, and home to the most liquid markets for trading FTSE® derivatives, today announced that it plans to launch a FTSE® 100 Index Total Return Future (TRF) on November 14, 2022, subject to regulatory approval.
The ICE FTSE® 100 Index TRF seeks to replicate the theoretical returns on a FTSE® 100 index total return swap in a more cost-efficient and transparent way, allowing participants to manage or gain exposure to the FTSE® 100 index, including its market and dividend risk, without owning the cash underlying.
The TRF contract enhances ICE’s FTSE® Index franchise, which offers the largest pool of FTSE® derivative open interest globally at a notional equivalent of more than £180 billion, and a participant base of more than 170 companies across 17 countries.
ICE offers futures and options on the FTSE® 100, FTSE® 250 and FTSE® 100 Dividend Index, providing a set of tools to measure the performance of all capital and industry segments of the U.K. equity market. ICE FTSE® futures are approved by the U.S. Commodity Futures Trading Commission and can be traded directly by U.S.-based market participants.
“ICE's relationship with FTSE Russell has spanned more than three and a half decades and we are delighted to now expand our FTSE markets with the introduction of the TRF,” said Caterina Caramaschi, VP, Financial Derivatives. “The U.K. market is firmly in focus with our customers who want to gain or manage exposure to the U.K. economy, and with the TRF, customers can benefit from the existing liquidity across ICE’s FTSE-linked product portfolio as well as the margin offsets available.”
Since the start of 2022, average daily volume across ICE's FTSE® complex is up 8% at approximately 183,600 contracts, while open interest is up 12% at approximately 2.7 million contracts.
“We’re very excited to partner with ICE on their launch of the ICE FTSE® 100 Index Total Return Future,” said Shawn Creighton, Director Index Derivatives Solutions at FTSE Russell. “The ICE FTSE® 100 Index Total Return Future will complement the FTSE suite of futures and options offered to global market participants and further underlines the ongoing long-term relationship with FTSE Russell and ICE.”
Intercontinental Exchange, Inc.(NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 3, 2022.
About FTSE Russell
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indices that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $17.9 trillion is currently benchmarked to FTSE Russell indices. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indices to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
