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ICE Plans to Launch Four MSCI Climate Paris Aligned Index Futures Contracts
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Rhea-AI Summary
Intercontinental Exchange (NYSE:ICE) announced plans to launch four new index futures contracts linked to the MSCI Climate Paris Aligned Indices, pending regulatory approval with a target launch in January 2022. These U.S. dollar-denominated contracts are designed to support investors aiming for net-zero alignment through proprietary climate metrics. The indices include the MSCI World, USA, Europe, and Emerging Market Climate Paris Aligned Indices. Industry leaders view this as a significant development in enhancing ESG solutions and managing climate-related risks within investment portfolios.
Positive
Launch of four new index futures contracts aimed at supporting net-zero investment strategies.
Contracts will use proprietary climate metrics, appealing to ESG-focused investors.
Partnership with MSCI enhances credibility and reach in the climate derivatives market.
Negative
None.
NEW YORK--(BUSINESS WIRE)--
Intercontinental Exchange (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced the planned launch of four new index futures contracts based on the MSCI Climate Paris Aligned Indices. Subject to regulatory approval, the contracts are expected to launch in January 2022 on ICE Futures U.S.
The new U.S. dollar-denominated futures contracts are designed to help investors align with a net-zero world by using a variety of proprietary, key climate metrics and models, including climate value-at-risk, low carbon transition score and companies’ carbon emission reduction targets. The indices covered will be the MSCI World Climate Paris Aligned Index, MSCI USA Climate Paris Aligned Index, MSCI Europe Climate Paris Aligned Index and MSCI Emerging Market Climate Paris Aligned Index.
“The Paris aligned goals are a fundamental part of the environmental, social and governance (ESG) landscape,” said Joel Stainton, EMEA Head of Execution, Futures and Options and OTC Clearing at Bank of America. “We are committed to identifying, developing and supporting ESG solutions for clients, so it is a positive step to see ICE launch these futures.”
“We welcome the timely introduction of futures on Climate Paris Aligned Indices as investors consider how to implement net-zero strategies into their portfolios,” said Antony Harden, Equity Derivatives Sales at Goldman Sachs.
“ICE offers customers access to the largest and most liquid environmental markets in the world to price climate risk and, as the leading venue for MSCI index futures, this new set of innovative contracts will help market participants align their portfolios with the goals of the Paris Agreement,” said Caterina Caramaschi, Global Head of Equity Derivatives at ICE. “Through these contracts, investors will be able to leverage MSCI’s leading index methodology and ICE’s established index futures ecosystem to hedge their climate related risks.”
“We’re excited to partner with ICE, a leader in bringing climate-focused derivatives products to the market,” said George Harrington, Global Head of Derivatives Licensing at MSCI. “At MSCI, we are committed to helping provide investors with the tools needed to align their portfolios with a low-carbon future, and this launch marks another step towards that mission.”
MSCI® and the MSCI indexes are trademarks and service marks of MSCI Inc. or its affiliates and are used under license.
About Intercontinental Exchange
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, 2020, as filed with the SEC on February 4, 2021.
