ICE Futures Singapore to launch Micro MSCI USA, Micro MSCI Europe Index Futures
Intercontinental Exchange, Inc. (NYSE:ICE) and MSCI Inc (NYSE:MSCI) today announced an extension of their existing license agreement to ICE Futures Singapore. As part of this, ICE plans to launch micro sized futures contracts based on the MSCI USA and MSCI Europe Index on ICE’s Singapore-based exchange on October 11, 2021.
The micro futures contracts, which are denominated in US Dollars, allow investors across Asia to access US and European equity markets on a single platform in a cost-efficient manner. Their small contract size (equivalent to a notional value of around USD $20,000) allows for granular trading and precise risk management.
The indices are designed to be representative of each region’s large and mid-cap equities. While the MSCI USA index represents the US equity opportunity set, the MSCI Europe Index covers 15 developed-market countries in Europe (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK).
“MSCI is committed to providing tools, services and insights for investors, empowering them to manage their portfolios for better outcomes,” said George Harrington, Global Head of Derivatives Licensing at MSCI. “We are pleased to work with ICE to bring enhanced trading and risk management solutions for investors in Asia who seek to capture opportunities in the US and European markets.”
“ICE is leveraging its strong partnership with MSCI to offer investors a way to trade global equities from Singapore, designed to meet demand within Asia for smaller sized contracts,” said Lucas Schmeddes, President, ICE Futures Singapore. “Tailored for the Asian market, ICE Futures Singapore connects regional and international participants on its platform to unlock trading opportunities and provide access to global markets.”
The Micro MSCI USA and Micro MSCI Europe Index futures contracts will trade alongside other contracts on ICE Futures Singapore which include Micro Asia Tech 30 Index futures, Bakkt® Bitcoin futures, as well as cash settled Mini Brent Crude, Mini US Dollar Index®, Mini US Dollar/Offshore Renminbi, and Mini US Dollar/Singapore Dollar futures.
ICE lists more than 100 futures contracts on MSCI indices, capturing the entire equity opportunity set across benchmarks including the MSCI ACWI, World, Emerging Markets and EAFE down to country-specific, sector and factor indices.