CHICAGO, Dec. 3, 2019 /PRNewswire/ -- Cboe Global
Markets (Cboe: CBOE), one of the world's largest exchange holding
companies, today announced it has launched a series of BuyWrite and
PutWrite strategy benchmark indices based on the MSCI EAFE
Index (MXEA) and MSCI Emerging Markets Index (MXEF), the industry's
preeminent indices for investors seeking exposure to international
and emerging markets, respectively. The launch of these indices
further expands Cboe's MSCI index product suite.
Cboe's benchmark indices are designed to help investors track
the performance of investment strategies that use options or
volatility products to help manage risk, reduce volatility and
enhance yield. The new Cboe-MSCI BuyWrite and PutWrite indices are
created for investors looking to replicate the same strategy on
global equities featuring MXEA and MXEF options.
"Cboe's popular strategy benchmark indices have proven to be
valuable tools for market participants seeking to gain effective
exposure to the global equity markets with less volatility, and
stronger risk-adjusted returns," said Bruce
Traan, Head of Global Index Services at Cboe Global Markets.
"As the industry leader in index options trading, we are pleased to
broaden our MSCI-related offerings with these performance benchmark
indices, and continue defining the markets with innovative products
and trading solutions that meet the needs of investors."
"We are delighted that Cboe has continued to leverage MSCI's
market-leading equity indices to expand their suite of strategy
benchmark indices," said George
Harrington, Global Head of Futures and Options Licensing at
MSCI. "Our expanded relationship reflects the increased demand for
derivatives-based strategies and the widespread adoption and
industry recognition of the MSCI Emerging Markets and EAFE
Indices."
The new Cboe-MSCI BuyWrite indices are designed to measure the
performance of a hypothetical portfolio that buys the underlying
stock index and writes covered calls on the MXEF and MXEA indices.
The Cboe-MSCI PutWrite indices are designed to measure
the performance of a hypothetical portfolio that sells an
at-the-money (ATM) MXEF and MXEA put option against collateralized
cash reserves held in a money market account.
The new Cboe-MSCI BuyWrite and PutWrite Options Strategy
Benchmarks are listed below:
Index
Name
|
Index
Ticker
|
Trading
Symbol
|
Cboe MSCI Emerging
Markets BuyWrite Index
|
BXEFM
Index
|
BXEF
|
Cboe MSCI Emerging
Markets 2% OTM BuyWrite Index
|
BYEF Index
|
BYEF
|
Cboe MSCI Emerging
Markets 20-Delta BuyWrite Index
|
BDEF Index
|
BDEF
|
Cboe MSCI Emerging
Markets PutWrite Index
|
PXEF Index
|
PXEF
|
Cboe MSCI Emerging
Markets 2% OTM PutWrite Index
|
PYEF Index
|
PYEF
|
Cboe MSCI Emerging
Markets 20-Delta PutWrite Index
|
PDEF Index
|
PDEF
|
Cboe MSCI EAFE
BuyWrite Index
|
BXEA Index
|
BXEA
|
Cboe MSCI EAFE 2% OTM
BuyWrite Index
|
BYEAM
Index
|
BYEA
|
Cboe MSCI EAFE
20-Delta BuyWrite Index
|
BDEAM
Index
|
BDEA
|
Cboe MSCI EAFE
PutWrite Index
|
PXEA Index
|
PXEA
|
Cboe MSCI EAFE 2% OTM
PutWrite Index
|
PYEA Index
|
PYEA
|
Cboe MSCI EAFE
20-Delta PutWrite Index
|
PDEAM
Index
|
PDEA
|
The MSCI EAFE Index (MXEA) is recognized as the pre-eminent
benchmark in the United States to
measure international equity performance. It comprises the MSCI
country indexes that represent developed markets outside of
North America: Europe, Australasia and the Far East. The MSCI
EAFE Index is calculated in U.S. dollars on a real-time basis and
disseminated every 60 seconds during market trading hours.
The MSCI Emerging Markets Index (MXEF) captures large- and
mid-cap representation across 23 Emerging Markets (EM) countries.
With more than 800 constituents, the index covers approximately 85
percent of the free float-adjusted market capitalization in each
country.
As announced in March 2019, with
its relationship with MSCI, Cboe may develop up to 50 strategy
benchmark and volatility indices over time for both MXEF and
MXEA. For more information on Cboe options on MSCI Indices,
visit www.cboe.com/MSCI.
MSCI is a leading provider of critical decision support tools
and services for the global investment community. With over 45
years of expertise in research, data and technology, MSCI powers
better investment decisions by enabling clients to understand and
analyze key drivers of risk and return and confidently build more
effective portfolios. MSCI creates industry-leading
research-enhanced solutions that clients use to gain insight into
and improve transparency across the investment process.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) is one of the world's largest
exchange holding companies, offering cutting-edge trading and
investment solutions to investors around the world. The company is
committed to defining markets to benefit its participants and drive
the global marketplace forward through product innovation, leading
edge technology and seamless trading solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S. and European equities, exchange-traded products (ETPs), global
foreign exchange (FX) and volatility products based on the Cboe
Volatility Index (VIX Index), recognized as the world's premier
gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates the largest stock exchange by value traded in
Europe and is a leading market
globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Media
Contacts
|
|
Analyst
Contact
|
|
|
|
|
Angela
Tu
|
Stacie
Fleming
|
|
Debbie
Koopman
|
+1-646-856-8734
|
+44-20-7012-8950
|
|
+1-312-786-7136
|
atu@cboe.com
|
sfleming@cboe.com
|
|
dkoopman@cboe.com
|
|
|
|
|
|
|
CBOE-OE
Cboe®, VIX® and Cboe Volatility Index® are registered
trademarks and Cboe Global MarketsSM is a service mark of Cboe
Exchange, Inc. All other trademarks and service marks are the
property of their respective owners .MSCI® and the MSCI index names
are service marks of MSCI Inc. or its affiliates and have been
licensed for use by Cboe Exchange, Inc. MSCI
does not sponsor, promote or market
investment products based on the MSCI
indexes and will not have any liability
with respect thereto.
Cboe Global Markets, Inc. and its affiliates do not recommend
or make any representation as to possible benefits from any
securities or investments, or third-party products or services.
Investors should undertake their own due diligence regarding their
securities and investment practices. This press release
speaks only as of this date. Cboe Global Markets, Inc. disclaims
any duty to update the information herein. Nothing in this
announcement should be considered a solicitation to buy
or an offer to sell any
securities in any jurisdiction where
the offer or solicitation would
be unlawful under the securities laws
of such jurisdiction. Nothing contained in this communication
constitutes tax, legal or investment advice. Investors must consult
their tax adviser or legal counsel for advice and information
concerning their particular situation.
Cboe Global Markets, Inc. and its
affiliates, to the maximum extent permitted by applicable law,
make no warranty, expressed or
implied, including, without limitation,
any warranties as of merchantability,
fitness for a particular purpose,
accuracy, completeness or timeliness, the
results to be obtained by recipients
of the products and services
described herein, or as to the ability of the Cboe benchmark
and volatility indexes and MSCI indexes to track the performance of
the various strategies, and shall not in any way be liable for any
inaccuracies or errors. Cboe Global Markets, Inc. and its
affiliates have not calculated, composed or determined the
constituents or weightings of the securities that comprise the MSCI
indexes and shall not in any way be liable for any inaccuracies or
errors.
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SOURCE Cboe Global Markets, Inc.