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ICE Launches Biotechnology Index Futures and Semiconductor Index Futures Contracts
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
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Rhea-AI Summary
Intercontinental Exchange (NYSE:ICE) has launched two new thematic equity index futures contracts: the ICE Biotechnology Gross Total Return (GTR) Index and the ICE Semiconductor GTR Index futures. Both contracts are cash-settled; the Biotechnology contract has a notional value of $100 per index point, while the Semiconductor contract is valued at $50. These contracts aim to provide investors tools to manage exposure to key market trends in biotechnology and semiconductors, reflecting significant developments in public health and supply chain dynamics. The indices are rules-based and track major U.S.-listed companies in their respective sectors.
Positive
Launch of new ICE Biotechnology GTR Index and ICE Semiconductor GTR Index futures contracts.
Contracts aim to help investors manage exposure to significant market trends.
New tools align with the growing importance of biotechnology and semiconductors in the global economy.
Negative
None.
NEW YORK--(BUSINESS WIRE)--
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, today announced that it has launched two new thematic equity index futures contracts: the ICE Biotechnology Gross Total Return (GTR) Index and the ICE Semiconductor GTR Index futures contracts.
The ICE Biotechnology GTR Index futures contract is cash-settled with a notional value equal to $100 times the ICE Biotechnology Index closing gross total return index value (Index symbol: ICEBIOT). The ICE Semiconductor GTR Index futures contract is also cash-settled and has a notional value equal to $50 times the ICE Semiconductor Index closing gross total return index value (Index symbol: ICESEMIT). Both contracts trade on ICE Futures U.S. The ICE Futures U.S. contract symbols are IUT for the ICE Biotechnology GTR Index futures and IUS for the ICE Semiconductor GTR Index futures contracts.
Both the ICE Biotechnology Index and the ICE Semiconductor Index are rules-based, modified float-adjusted market capitalization-weighted indices that track the performance of qualifying U.S. listed biotechnology companies and the thirty largest U.S. listed semiconductor companies respectively. These indices comprise stocks listed on major U.S. exchanges and are constructed using sector and industry classifications from the ICE Uniform Sector Classification Schema.
“The last two years have seen the narratives around public health and supply chain dynamics reach new levels of prominence and significance in our daily lives,” said Caterina Caramaschi, Global Head of Equity Derivatives at ICE. “The new futures contracts based on the ICE Biotechnology Index and ICE Semiconductor Index are designed to offer investors tools to manage exposure to these megatrends as they become increasingly important to global economies.”
“ICE indices have helped market participants capture exposure to some of the most dynamic trends that are shaping the global economy,” said Amanda Hindlian, President of Fixed Income and Data Services at ICE. “The ICE Biotechnology Index and ICE Semiconductor Index provide market participants with effective tools to track advancements in areas like biotechnology and genomics, as well as supply and demand imbalances for semiconductors.”
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.
What are the new futures contracts launched by ICE?
ICE has launched the ICE Biotechnology Gross Total Return (GTR) Index and the ICE Semiconductor GTR Index futures contracts.
What is the notional value of the ICE Biotechnology GTR Index futures contract?
The ICE Biotechnology GTR Index futures contract has a notional value of $100 times the index's closing gross total return.
What is the notional value of the ICE Semiconductor GTR Index futures contract?
The ICE Semiconductor GTR Index futures contract has a notional value of $50 times the index's closing gross total return.
Why were these new futures contracts created?
The contracts were designed to provide tools for investors to manage exposure to important trends in biotechnology and semiconductors.
What types of companies do the new ICE indices track?
The new ICE indices track qualifying U.S.-listed biotechnology and semiconductor companies.
When did the related ETFs begin tracking these indices?
The iShares Biotechnology ETF (IBB) and iShares Semiconductor ETF (SOXX) began tracking the ICE Biotechnology Index and the ICE Semiconductor Index in June 2021.
