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Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, announced today it has entered into an agreement with MSCI Inc. (NYSE: MSCI), a leading provider of indexes and critical investment decision support tools and services, to launch a suite of derivatives-based strategy performance benchmark and volatility indexes based on the MSCI Emerging Markets Index (MXEF) and the MSCI EAFE Index (MXEA), key indexes for investors seeking exposure to international and emerging markets.
Cboe's benchmark indexes 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 benchmarks are expected to be designed in the same manner as the widely followed derivatives-based strategy performance benchmark and volatility indexes currently available on Cboe's S&P Dow Jones and FTSE Russell derivatives index products. BuyWrite, PutWrite and Volatility indexes are being developed for both MXEF and MXEA. Cboe may develop up to 50 strategy benchmark and volatility indexes over time.
"MSCI is a key index partner and Cboe is pleased to expand its relationship through this agreement, which will be an important step in the further growth of the MSCI-related index suite at Cboe," said John Deters, Chief Strategy Officer and Head of Multi-Asset Solutions, Cboe Global Markets. "Cboe continues to define index options and volatility trading with innovative products and trading solutions. We believe these new Cboe-MSCI benchmarks will serve as important tools for investors seeking to implement derivatives-based strategies and improve risk-adjusted returns within a portfolio."
"Investors are increasingly looking for different ways to efficiently gain exposure to the global equity markets in their portfolios, while managing the inherent risk and volatility that may impact returns," said George Harrington, Global Head of Futures and Options Licensing at MSCI. "We are pleased to continue working with Cboe to grow their MSCI product suite and help investors manage and measure their derivatives-based strategy performance to help accomplish this."
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.
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.
For more information on Cboe options on MSCI Indexes, 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. To learn more, please visit www.msci.com.
