ICE to Launch MSCI® Equity Index Futures on ICE Futures Abu Dhabi

Rhea-AI Summary

Intercontinental Exchange (NYSE: ICE) has announced plans to launch MSCI® Equity Index Futures contracts on ICE Futures Abu Dhabi on February 24, 2025, subject to regulatory review. The new offering includes Micro MSCI futures for GCC Countries, Qatar, UAE, and India indices, all denominated in US dollars.

This initiative introduces a new asset class for trading at ICE Futures Abu Dhabi, providing investors with access to Gulf and Indian equity markets and risk management capabilities. ICE currently dominates MSCI Futures trading, accounting for over 70% of global volume, with average daily trading in 2024 representing approximately $13.6 billion in notional value.

The launch aims to enhance regional financial market development, improve market liquidity, and strengthen connectivity with global capital flows. It particularly emphasizes the growing importance of the Middle East-Asia corridor and supports the increasing participation of quantitative investment strategies in MENA markets.

Positive

• Launch of new MSCI Equity Index Futures expands ICE's product offering in strategic Gulf and Indian markets
• ICE holds dominant position with over 70% of global MSCI Futures trading volume
• Current MSCI complex generates significant daily trading volume worth $13.6 billion in notional value

Negative

• None.

Insights

Investment Product Specialist

The launch of MSCI Equity Index Futures on ICE Futures Abu Dhabi marks a strategic expansion in ICE's global derivatives offering, with significant implications for market accessibility and risk management in emerging markets. The introduction of micro contracts is particularly noteworthy, as it democratizes access to Gulf and Indian equity markets by reducing the capital requirements for participation.

The timing is especially strategic given the rising prominence of Gulf markets in global finance. With ICE already commanding over 70% of global MSCI Futures trading volume and handling an estimated $13.6 billion in daily notional value, this expansion leverages existing infrastructure while tapping into the growing Middle East-Asia investment corridor.

Key strategic advantages include:

• USD denomination ensuring seamless integration with global trading systems
• Coverage of both consolidated (GCC) and country-specific indices (Qatar, UAE, India)
• Support for quantitative investment strategies in MENA markets
• Enhanced risk management capabilities for regional exposure

This launch represents more than just new products - it's a structural enhancement to market infrastructure that could accelerate the development of sophisticated trading strategies in emerging markets. The collaboration with MSCI, leveraging their trusted methodologies, adds credibility and standardization that institutional investors require.

Market Structure Analyst

This expansion represents a significant evolution in market structure for Gulf and Indian equity markets. By introducing standardized futures contracts through a regulated exchange, ICE is addressing key infrastructure gaps that have historically institutional participation in these markets.

The market structure implications are profound:

• Enhanced price discovery through centralized trading
• Improved liquidity aggregation via standardized contracts
• Reduced counterparty risk through central clearing
• Lower transaction costs through economies of scale

The selection of Abu Dhabi as the trading venue is strategically sound, capitalizing on the emirate's growing status as a financial hub and its position between Asian and European trading hours. This creates a natural liquidity bridge across time zones, potentially leading to more efficient price discovery and reduced overnight risk for global investors.

The introduction of micro contracts is particularly significant for market structure, as it could lead to more diverse market participation and improved price formation. This granularity in contract size could attract both retail and institutional investors, potentially creating a more robust and resilient market ecosystem.

Launch Extends Equities Access to Gulf and Indian Markets

ABU DHABI, United Arab Emirates--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced plans to launch MSCI® Equity Index Futures contracts on ICE Futures Abu Dhabi on February 24, 2025, subject to regulatory review.

This launches a new asset class for trading at ICE Futures Abu Dhabi and will include: Micro MSCI GCC Countries Index Futures, Micro MSCI Qatar Index Futures, Micro MSCI UAE Index Futures and Micro MSCI India Index Futures. The contracts, all denominated in US dollars, will provide investors with a way to access Gulf and Indian equity markets and manage equity risk in the region.

“The introduction of the new index futures marks a transformative step in advancing financial markets in the region and strengthening the connectivity with global capital flows,” said Nabeel Albloushi, Head of Markets and Securities Services, HSBC Middle East, North Africa and Turkiye. “These products will support increasing market liquidity, provide hedging solutions and empower clients locally and globally to access and manage risk.”

“The MSCI UAE, Qatar, and GCC Index Futures play a key role in reinforcing the region’s financial infrastructure and allow local and international investors to be part of the journey, while the introduction of the MSCI India Index Future highlights the growing importance of the Middle East-Asia corridor, enabling investors to leverage growth opportunities in one of the largest emerging markets globally,” continued Albloushi.

“We welcome ICE Futures Abu Dhabi’s expansion into regional stock indexes and further development in regional derivatives markets,” said Adam Kamyar, Head of MENA & APAC, Winton Capital. “These new instruments will further support the growing participation of quantitative investment strategies in MENA markets and the development of innovative investment products.”

“We are excited to team up with ICE to introduce equity index futures, leveraging MSCI's trusted index methodologies and ICE's leading trading infrastructure," said George Harrington, Managing Director, MSCI. "This collaboration marks an important step forward in providing the market with innovative tools for equity trading and underscores our commitment to growing markets in the Middle East.”

“ICE is building on its energy offering on ICE Futures Abu Dhabi to serve investor demand for transparent, standardized, and flexible access to regional Gulf equity markets,” said Gary King, President of ICE Futures Abu Dhabi. “With this offering tailored for the Gulf region, ICE is connecting local and global investors, providing enhanced opportunities for strategic trading and risk management in equity markets and broadening ICE Futures Abu Dhabi to this new asset class.”

ICE is already home to the most liquid markets to trade the benchmark MSCI ACWI, MSCI EAFE, MSCI Emerging Markets, MSCI ESG and MSCI Climate indexes with ICE accounting for over 70% of all MSCI Futures trading by volume. In 2024, average daily volume for ICE’s MSCI complex was equal to an estimated $13.6 billion of notional value.

For more information on MSCI Equity Index Futures, please visit the ICE MSCI Index Derivatives page.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates 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, 2023, as filed with the SEC on February 8, 2024.

Category: EXCHANGES

ICE-CORP

Source: Intercontinental Exchange

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127276228/en/

ICE Media:

Jess Tatham

jess.tatham@ice.com

+44 7377 947136

ICE Investor:

Katia Gonzalez

katia.gonzalez@ice.com

(678) 981-3882

Source: Intercontinental Exchange

FAQ

When will ICE launch the new MSCI Equity Index Futures on ICE Futures Abu Dhabi?

ICE plans to launch the MSCI Equity Index Futures on ICE Futures Abu Dhabi on February 24, 2025, subject to regulatory review.

Which MSCI index futures contracts will ICE offer on the Abu Dhabi platform?

ICE will offer Micro MSCI GCC Countries Index Futures, Micro MSCI Qatar Index Futures, Micro MSCI UAE Index Futures, and Micro MSCI India Index Futures.

What is ICE's current market share in global MSCI Futures trading?

ICE accounts for over 70% of all MSCI Futures trading by volume globally.

What is the average daily trading volume for ICE's MSCI complex in 2024?

In 2024, ICE's MSCI complex average daily volume was equal to an estimated $13.6 billion of notional value.

What currency will the new MSCI Equity Index Futures contracts be denominated in?

All the new MSCI Equity Index Futures contracts will be denominated in US dollars.