Intercontinental Exchange, Inc., a leading global provider of data, technology, and market infrastructure, and home to the most liquid markets for trading FTSE® derivatives, announced that it plans to launch a FTSE® 100 Index Total Return Future (TRF) on November 14, 2022, subject to regulatory approval.
The ICE FTSE® 100 Index TRF seeks to replicate the theoretical returns on a FTSE® 100 index total return swap in a more cost-efficient and transparent way, allowing participants to manage or gain exposure to the FTSE® 100 index, including its market and dividend risk, without owning the cash underlying.
The TRF contract enhances ICE’s FTSE® Index franchise, which offers the largest pool of FTSE® derivative open interest globally at a notional equivalent of more than £180 billion, and a participant base of more than 170 companies across 17 countries.
ICE offers futures and options on the FTSE® 100, FTSE® 250 and FTSE® 100 Dividend Index, providing a set of tools to measure the performance of all capital and industry segments of the U.K. equity market. ICE FTSE® futures are approved by the U.S. Commodity Futures Trading Commission and can be traded directly by U.S.-based market participants.
“ICE’s relationship with FTSE Russell has spanned more than three and a half decades and we are delighted to now expand our FTSE markets with the introduction of the TRF,” said Caterina Caramaschi, VP, Financial Derivatives. “The U.K. market is firmly in focus with our customers who want to gain or manage exposure to the U.K. economy, and with the TRF, customers can benefit from the existing liquidity across ICE’s FTSE-linked product portfolio as well as the margin offsets available.”
Since the start of 2022, average daily volume across ICE’s FTSE® complex is up 8% at approximately 183,600 contracts, while open interest is up 12% at approximately 2.7 million contracts.
“We’re very excited to partner with ICE on their launch of the ICE FTSE® 100 Index Total Return Future,” said Shawn Creighton, Director Index Derivatives Solutions at FTSE Russell. “The ICE FTSE® 100 Index Total Return Future will complement the FTSE suite of futures and options offered to global market participants and further underlines the ongoing long-term relationship with FTSE Russell and ICE.”