NASDAQ Launches MSCI index-based options
Traders Magazine Online News, May 1, 2012
NASDAQ OMX announced Tuesday the launch of MSCI Emerging Markets and MSCI EAFE index options.
The options are available to investors who want exposure to a previously untapped market with a cash-settled options offering that exactly tracks the performance of the index. NASDAQ market participants can use MSCI EM and MSCI EAFE Index options to track the performance of the underlying index, employ additional trading strategies for cash-settled index options and gain more opportunity to hedge.
"The launch of these options provides institutional investors with yet another important tool for managing their portfolios benchmarked to MSCI equity indices," said Baer Pettit, managing director and head of the MSCI index business.
The MSCI Emerging Markets and MSCI EAFE Indices are free-float adjusted market capitalization indexes focused on emerging and developed markets. With over 800 securities in 21 markets, the MSCI Emerging Markets Index tracks equity market performance in emerging markets, covering large and mid-cap securities in all industries in regions like the Americas, Europe, the Middle East, Africa and Asia.
The MSCI EAFE Index is a prominent benchmark in the United States, measuring international equity performance. The Index is comprised of stocks from 22 developed markets outside of North America, including Europe, Australasia and the Far East.
Nasdaq recently announced that it planned to launch a third options exchange, pushing the number of options exchanges from nine to 12 this year. The exchange operator put out a statement saying its new exchange would "complement" its existing exchanges - Nasdaq OMX Phlx and the Nasdaq Options Market - and that the exchange operator's intention was to "offer innovative market structure that improves the quality of the marketplace."
Nasdaq is the third organization to announce it planned to launch a new options exchange. The International Securities Exchange and an outfit called Miami International Holdings have both indicated they plan to launch an exchange this year.
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