NYSE Euronext Secures US Rights To List MSCI Index Futures
July 12 2010 - 11:02AM
Dow Jones News
NYSE Euronext (NYX) on Monday cemented a relationship with stock
index company MSCI Inc. (MSCI), granting the exchange operator
exclusive rights to trade futures tied to benchmarks for European,
Asian and emerging markets.
The agreement will see NYSE Euronext over the next year
consolidate trading in the contracts on its still-small futures
platform Liffe US, as MSCI aims to wind down an existing
relationship with much-larger CME Group Inc. (CME) by June
2011.
"We still have a long way to go, but this proves that if you do
things that make sense...there is a possibility to start building
markets away from the only other game in town right now," said
Marco Bianchi, head of business development for NYSE Liffe US.
The upstart exchange is looking to build a derivatives franchise
around the MSCI indexes, which are tracked by asset managers,
pension plans and other institutions; futures contracts on the
anticipated value of the indexes let funds guard themselves against
potential fluctuations in the market, or take a view on the
economic fortunes of a sector or specific region. An estimated $3
trillion in assets is benchmarked to MSCI measures globally.
NYSE Euronext also is talking to MSCI about listing options
contracts on the indexes, which would trade on the operator's two
options platforms, according to Bianchi.
NYSE Liffe US introduced its first futures on MSCI indexes last
fall after forging a licensing agreement covering 41 benchmarks,
though volume has been light relative to much more heavily traded
contracts tied to the S&P 500 index and Dow Jones Industrial
Average, both of which are exclusively listed at CME Group.
-By Jacob Bunge, Dow Jones Newswires; 312-750-4117;
jacob.bunge@dowjones.com
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