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MIAX®, operator of high-performance securities exchanges and SIG Index Licensing, LLC (SIG Index Licensing) announced today the launch of cashsettled futures contracts on SIG Index Licensing’s U.S. Capital Gains Tax Rate Index (the Index). The new futures contracts will begin trading on Minneapolis Grain Exchange, LLC (MGEXTM) on December 6, 2021.
Capital Gains Tax Rate Futures are the second proprietary futures product developed by MIAX and SIG Index Licensing designed to provide capital market participants with a tool to manage potential changes in U.S. tax rates. U.S. Corporate Tax Rate Futures were listed on MGEX on May 24, 2021.
“Capital Gains Tax Rate Futures are the first-ever future providing investors with the ability to hedge and manage risk associated with potential changes in capital gains tax rates,” said Thomas P. Gallagher, Chairman of MGEX and Chairman & CEO of MIAX. “We are pleased to expand our partnership with SIG Index Licensing and offer another innovative tool on MGEX to help investors manage tax exposure in an uncertain economic environment.”
The cash-settled futures contracts on the Index will be listed on MGEX via the CME Globex® platform and cleared by MGEX, a wholly owned subsidiary of MIAX’s parent company, Miami International Holdings. The Index is calculated by Devexperts and published on the MIAX Proprietary Feed (MPF). The Index is also distributed by Bloomberg each day at 9:00 a.m. ET.
“Capital Gains Tax Futures are a powerful tool for individual investors, providing a new opportunity to manage tax exposures resulting from changes in capital gains tax rates imposed on investors,” said Mark G. Bagan, President and Chief Executive Officer of MGEX. “These new futures represent the latest product to be listed and cleared on MGEX, providing the industry with another innovative tool designed to meet the unique needs of investors in today’s capital markets.”
Added Bart Smith, Head of FICC, ETF and Portfolio Group at the Susquehanna International Group of
Companies: “We are pleased to expand our partnership with MIAX as we launch the new Capital Gains Tax Futures product. We believe the growing suite of Tax Rate Futures listed on MGEX provides the industry with powerful tools to help manage tax exposure, especially as the debate on tax policy continues to evolve both in Washington and around the world.”
For more on the methodology of Capital Gains Tax Rate Futures please visit https://www.miaxoptions.com/tax/capgains or www.mgex.com.
