Derivatives and securities exchange network Cboe Global Markets has launched options on three new MSCI indices – Cboe MSCI World Index Options (MXWLD), Cboe MSCI ACWI Index Options (MXACW), and Cboe MSCI USA Index Options (MXUSA).
The launch is part of Cboe’s partnership with MSCI, a provider of support tools and services for the global investment community.
According to a press release, the three new MSCI index options are designed to provide exposure to international, developed and emerging markets, as well as providing pension funds, insurance companies amongst other institutional investors with more efficient ways to hedge their global equity exposure, while minimising potential tracking error and currency risk.
Additionally, each of MXWLD and MXUSA is based on a fraction (1/100th) of the value of its underlying index, making these options more accessible for retail investors.
Cboe initially listed MXACW, MXUSA, and MXWLD with standard expiration on the third Friday of each month. Additionally, Cboe plans to list five end-of-week expirations that are expected to begin trading on 21 March 2024. The three new Cboe MSCI Index options are available for trading on the Cboe Options Exchange.
The new index options are in addition to the currently listed Cboe MSCI tradable products, which include Cboe MSCI EAFE Index Options (MXEA) and Cboe MSCI Emerging Markets Index Options (MXEF).
