Cboe Global Markets and MSCI Join Forces to Introduce New Index Options and Volatility Indices

Cboe Global Markets (Cboe), the leading exchange network for global derivatives, announced a new strategy in collaboration with MSCI, a leading provider of critical decision support tools and services for the global investment community, to expand its suite of Cboe-MSCI Index options and volatility indices.

According to the announcement, Cboe will expand its existing MSCI Index options suite by introducing three new products based on additional MSCI global indices, including Cboe MSCI World Index Options (MXWLD), Cboe MSCI ACWI Index Options (MXACW), and Cboe MSCI USA Index Options (MXUSA).

The newly introduced options will be based on widely recognized benchmarks —— the MSCI World Index, the MSCI ACWI Index, and the MSCI USA Index which measure the performance of international markets, developed and emerging markets, and the U.S. stock market respectively. Notably, the MXWLD and MXUSA options will be based on a fraction (1/100th) of the value of their respective underlying indices.

These options are expected to begin trading on Monday, March 18, pending regulatory approval. Like existing Cboe MSCI tradable products, the newly launched options will follow a European-style exercise (no early exercise), are cash-settled (no delivery or assignment of shares) at expiration and may potentially offer favorable tax treatment.

Additionally, Cboe is broadening its volatility index suite with the launch of two new Cboe MSCI Volatility Indices: the Cboe MSCI EAFE Volatility Index (VXMXEA) and the Cboe MSCI Emerging Markets Volatility Index (VXMXEF). Developed using Cboe's proprietary VIX® Index methodology, these indices are based on existing MSCI EAFE Index Options (MXEA) and MSCI Emerging Markets Index Options (MXEF) and are designed to provide a transparent measure of the market's expectation of 30-day implied volatility by these respective MSCI index option classes.

Catherine Clay, Global Head of Derivatives at Cboe, said: "In today's rapidly evolving landscape, investors require sophisticated tools to navigate the markets with confidence. Our ongoing collaboration with MSCI reflects our shared commitment to fostering innovation and providing solutions that empower investors to better manage risk and seize potential opportunities in the global marketplace. We are excited to expand our Cboe-MSCI toolkit with additional index options and volatility indices – an enhancement that will not only broaden our customers' product choice, but also enrich the ways they interact with and analyze the global markets.

"Crucially, the three new index options, which cover developed and emerging markets, are expected to also give investors comprehensive access to gain a variety of different exposures around the globe."