CHICAGO, Oct. 21, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, and MSCI Inc., a leading
provider of critical decision support tools and services for the
global investment community, today announced they have signed a
licensing agreement that extends and broadens their strategic
relationship.
The agreement builds on many years of successful collaboration
between the two companies and extends Cboe's rights to offer
options trading on MSCI global indices through 2031. Significantly,
the agreement also expands Cboe's and MSCI's relationship, creating
opportunities for the companies to work together to pursue other
strategic initiatives across capital markets, and combine their
complementary strengths and visions to help drive future innovation
for market participants globally.
"We have valued our strong partnership with MSCI for many
years and are pleased to expand our relationship through this
strategic agreement," said Ed Tilly,
Chairman, President and Chief Executive Officer of Cboe Global
Markets. "Cboe and MSCI share a common vision to help market
participants protect capital, transfer risk and generate wealth to
create a sustainable financial future. Our expanded relationship
with MSCI opens up a world of opportunities for new products,
services and solutions, and we look forward to working together to
further serve the global investment community."
The two companies have collaborated successfully to offer
options trading on MSCI global indices for many years. Under the
agreement, initially signed in 2014, Cboe will continue to have the
rights in the U.S. to develop and list index options on the
following six MSCI indices: the MSCI EAFE Index (MXEA), MSCI
Emerging Markets Index (MXEF), MSCI All Country World Index, MSCI
USA Index, MSCI World Index and
the MSCI ACWI ex-USA Index.
In addition, the agreement enables Cboe to offer index options,
subject to regulatory approval, on four additional MSCI ESG
indices: the MSCI Emerging Markets ESG Leaders Index, MSCI EAFE ESG
Leaders Index, MSCI USA ESG
Leaders Index and the MSCI World ESG Leaders Index.
"This agreement represents a huge innovation for the derivative
market," said Henry Fernandez,
Chairman and Chief Executive Officer of MSCI. "It will increase
access to products our clients need while helping us build a
stronger financial system. It also lays the groundwork for
additional collaboration between MSCI and Cboe in the years ahead.
We are excited to continue growing our strategic relationship."
Cboe is currently the only U.S. exchange that offers options
trading on MSCI indices. In this newly strengthened relationship,
Cboe and MSCI plan to leverage their combined capabilities to
further grow the MSCI-Index options product suite and help drive
greater volume and liquidity through enhanced education, content
and services for customers. Further, the companies plan to
explore opportunities beyond traditional equity derivatives
products to help market participants navigate the "next generation
of risk" resulting from structural shifts in markets and
society.
In addition to index options, Cboe offers a series of BuyWrite
and PutWrite strategy benchmark indices based on the MSCI EAFE
Index and MSCI Emerging Markets Index. As part of its continued
relationship with MSCI, Cboe also expects to develop additional
strategy benchmark and volatility indices over time for both
indices.
Options trading on the MSCI EAFE Index and MSCI Emerging Markets
Index – the world's pre-eminent benchmarks for measuring
international and emerging market equity performance, respectively
– offer investors the opportunity to better manage global equity
exposure, help mitigate portfolio risk and potentially generate
additional options premium income. Trading in options on other
MSCI indices offers opportunities to hedge a variety of different
exposures, as well. For additional information on Cboe's MSCI-Index
options and related offerings, visit www.cboe.com/MSCI.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The company is committed to operating a trusted,
inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities, derivatives
and FX, across North America,
Europe and Asia Pacific. To learn more, visit
www.cboe.com.
About MSCI Inc.
MSCI is a leading provider of critical decision support tools
and services for the global investment community. With over 50
years of expertise in research, data, and technology, we power
better investment decisions by enabling clients to understand and
analyze key drivers of risk and return and confidently build more
effective portfolios. We create industry-leading research-enhanced
solutions that clients use to gain insight into and improve
transparency across the investment process.
Media
Contacts
|
Analyst
Contact
|
Angela Tu
(Cboe)
|
Melanie Blanco
(MSCI)
|
Kenneth Hill, CFA
(Cboe)
|
+1-646-856-8734
|
+1-646-220-4157
|
+1-312-786-7559
|
atu@cboe.com
|
melanie.blanco@msci.com
|
khill@cboe.com
|
CBOE-C
Cboe® and Cboe Global Markets® are
registered trademarks of Cboe Exchange, Inc. All other
trademarks and service marks are the property of their respective
owners.
Any products that have the MSCI Index or Indexes as their
underlying interest are not sponsored, endorsed, sold or promoted
by MSCI Inc. or Cboe and neither MSCI Inc. nor Cboe make any
representations or recommendations concerning the advisability of
investing in products that have MSCI indexes as their underlying
interests. All other trademarks and service marks are the
property of their respective owners.
Cboe Global Markets, Inc. and its affiliates do not
recommend or make any representation as to possible benefits from
any securities, futures or investments, or third-party products or
services. Cboe Global Markets, Inc. is not affiliated with MSCI
Inc. Investors should undertake their own due diligence regarding
their securities, futures, 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 or futures
in any jurisdiction where the offer or solicitation would be
unlawful under the 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 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 indices referenced in this press release
to track the performance of their respective securities, generally,
or the performance of the indices referenced in this press release
or any subset of their respective securities, and shall not in any
way be liable for any inaccuracies, errors. Cboe Global
Markets, Inc. and its affiliates have not calculated, composed or
determined the constituents or weightings of the securities that
comprise the third-party indices referenced in this press release
and shall not in any way be liable for any inaccuracies or errors
in any of the indices referenced in this press release.
Options involve risk and are not suitable for all market
participants. Prior to buying or selling an option, a person should
review the Characteristics and Risks of Standardized Options (ODD),
which is required to be provided to all such persons. Copies
of the ODD are available from your broker or from The Options
Clearing Corporation, 125 S. Franklin
Street, Suite 1200, Chicago,
IL 60606.
Cautionary Statements Regarding Forward-Looking
Information
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve a number of risks and uncertainties. You can identify
these statements by forward-looking words such as "may," "might,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," and the negative of these
terms and other comparable terminology. All statements that reflect
our expectations, assumptions or projections about the future other
than statements of historical fact are forward-looking statements.
These forward-looking statements, which are subject to known and
unknown risks, uncertainties and assumptions about us, may include
projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements
are only predictions based on our current expectations and
projections about future events. There are important factors that
could cause our actual results, level of activity, performance or
achievements to differ materially from those expressed or implied
by the forward-looking statements.
We operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible to predict all risks and uncertainties, nor
can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements.
Some factors that could cause actual results to differ
include: the impact of the novel coronavirus ("COVID-19") pandemic,
including changes to trading behavior broadly in the market; the
loss of our right to exclusively list and trade certain index
options and futures products; economic, political and market
conditions; compliance with legal and regulatory obligations; price
competition and consolidation in our industry; decreases in trading
or clearing volumes, market data fees or a shift in the mix of
products traded on our exchanges; legislative or regulatory
changes; our ability to protect our systems and communication
networks from security risks, cybersecurity risks, insider threats
and unauthorized disclosure of confidential information; increasing
competition by foreign and domestic entities; our dependence on and
exposure to risk from third parties; fluctuations to currency
exchange rates; our index providers' ability to maintain the
quality and integrity of their indices and to perform under our
agreements; our ability to operate our business without violating
the intellectual property rights of others and the costs associated
with protecting our intellectual property rights; our ability to
attract and retain skilled management and other personnel; our
ability to minimize the risks, including our credit and default
risks, associated with operating a European clearinghouse; our
ability to accommodate trading and clearing volume and transaction
traffic, including significant increases, without failure or
degradation of performance of our systems; misconduct by those who
use our markets or our products or for whom we clear transactions;
challenges to our use of open source software code; our ability to
meet our compliance obligations, including managing potential
conflicts between our regulatory responsibilities and our
for-profit status; our ability to maintain BIDS Trading as an
independently managed and operated trading venue, separate from and
not integrated with our registered national securities exchanges;
damage to our reputation; the ability of our compliance and risk
management methods to effectively monitor and manage our risks; our
ability to manage our growth and strategic acquisitions or
alliances effectively; restrictions imposed by our debt obligations
and our ability to make payments on or refinance our debt
obligations; our ability to maintain an investment grade credit
rating; impairment of our goodwill, long-lived assets, investments
or intangible assets; and the accuracy of our estimates and
expectations. More detailed information about factors that may
affect our actual results to differ may be found in our filings
with the SEC, including in our Annual Report on Form 10-K for the
year ended December 31, 2020 and
other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to
update any forward-looking statement whether as a result of new
information, future events or otherwise, except as required by law.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cboe-global-markets-and-msci-inc-expand-relationship-extend-licensing-agreement-through-2031-301405710.html
SOURCE Cboe Global Markets, Inc.