Cboe Global Markets Introduces Three New MSCI Index Options

Cboe Global Markets (Cboe), the leading exchange network for global derivatives, further bolstering its offerings with the launch of Cboe MSCI World Index Options (MXWLD), Cboe MSCI ACWI Index Options (MXACW), and Cboe MSCI USA Index Options (MXUSA).

The introduction is an extension of the close association of Cboe with MSCI Inc. (MSCI), a leading provider of critical decision support tools and services for the global investment community. This comes after their joint launch of three new index options and volatility indices​ last month.

According to Cboe, the three newly introduced MSCI index options are designed to offer various investors the opportunity to gain exposure to international, developed, and emerging markets, as well as the performance of the U.S. equity market. These fresh Cboe MSCI index options present pension funds, insurance companies, and other institutional investors with more effective methods to hedge their global equity exposure, while reducing the risks associated with tracking error and currency fluctuations. Furthermore, both MXWLD and MXUSA are based on a fractional value (1/100th) of their respective underlying indices, making these options more accessible for retail investors.

Catherine Clay, Head of Global Derivatives at Cboe Global Markets, stated: "As more investors seek global equity exposure, adding three new options on MSCI's world renowned benchmarks was the natural next evolution for Cboe's suite of index options products. Whether investors are looking to hedge their portfolios, generate yields, or make directional trades, we have seen heightened interest in the optionality derivatives can provide. These new index options, and the MSCI volatility benchmark indices launched recently will provide important tools in helping investors manage their global exposures. We look forward to building upon our relationship with MSCI and providing investors the global risk management tools they need."

Cboe initially listed MXACW, MXUSA, and MXWLD with a standard expiry date on the third Friday of every month. Furthermore, Cboe has future plans to introduce five end-of-week expirations, scheduled to start trading on March 21, 2024. These three new Cboe MSCI Index options are currently tradable on the Cboe Options Exchange.