NYSE Euronext (NYX) announced plans Tuesday to launch a new range of equity index futures likely to intensify competition among global derivatives exchanges.

The contracts based on MSCI Inc. (MXB) indexes are the first self-developed products for the exchange operator's small U.S. derivatives platform, which was launched last year with metals futures acquired from CME Group Inc. (CME).

The push into domestic and international equity index futures will take NYSE Euronext head-to-head with its main rivals in a market that has proven more resilient than traditional interest-rate futures.

Expanding the U.S. derivatives business was a key part of the 2007 merger between NYSE Group and Euronext, balancing slower growth and lower-margin equities operations on both sides of the Atlantic.

Tom Callahan, head of the NYSE Liffe U.S. platform, said its partnership with MSCI covers 44 indexes, and renewal of the contract will depend in part on trading volume.

Competition among exchanges for index licenses has been fierce at times as operators stake out ground that has become more valuable amid the slump in interest-rate products.

Callahan said there was acute interest in MSCI benchmark products, particularly among U.S.-based algorithmic traders.

"In terms of [assets under management], MSCI has about one-third of the U.S. cash ETF market, so there's proven trading demand in cash form," he said in an interview.

Volatility in the cash equity markets has driven higher volume in index-linked contracts on both sides of the Atlantic.

"In equity indices, volumes are strong, interest is high and we expect that to remain for the foreseeable future," added Callahan.

The new NYSE Liffe U.S futures will link to MSCI's benchmarks for U.S. and European equity markets, as well as indexes tracking Brazil, Russia, India, China and emerging markets.

London-based NYSE Liffe already trades futures on the FTSE and AEX indexes, while Eurex, the derivatives arm of Deutsche Boerse AG (DB1.XE), has the Dow Jones STOXX indexes of European equities and the DAX German blue chip index.

CME trades products based on the S&P and Dow Jones Industrial Average indexes; the Chicago-based exchange company used to maintain markets in the Russell 2000 family of indexes until IntercontinentalExchange Inc. (ICE) took over the license and transferred the products to its platform last fall.

Callahan said partnering with MSCI is a "natural extension" of NYSE Euronext's existing relationship with the index provider, which includes exchange-traded funds and options based on MSCI indexes.

The exchange is working with the Options Clearing Corp., which clears trades on NYSE Liffe US, to develop cross-margining capabilities that will make it cheaper to trade across the product group.

NYSE Liffe US will also extend an incentive program, introduced in April to tie its precious metals futures to similar ETFs, to cover the new MSCI index futures.

Callahan said that program hasn't yet translated to higher volumes in the existing gold and silver derivatives, as participants work through a regulatory process to access the incentives.

-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117; jacob.bunge@dowjones.com