MIAX Launches Corporate Tax Rate Futures on MGEX

Fazzaco learned that MIAX®, operator of high-performance securities exchanges, products and services, and the Minneapolis Grain Exchange (MGEX) today announced the successful first day of trading in Corporate Tax Rate Futures on the MGEX on May 24, 2021.

The cash-settled futures contracts are listed on MGEX via the CME Globex® platform and are cleared by MGEX, a wholly owned subsidiary of MIAX's parent company, Miami International Holdings. Corporate Tax Futures are based on the SIL U.S. Corporate Tax Rate Index (CTAX) developed by SIG Index Licensing, LLC. CTAX is published and distributed by Bloomberg each day at 9:00 a.m. ET.

Today's announcement marks MIAX's second successful launch of a proprietary futures product following SPIKES® Futures. Corporate Tax Rate Futures are traded exclusively on MGEX and offer the industry a new way to hedge market exposure by tracking the highest marginal tax rate imposed by the United States federal government on the taxable income of corporations.

Thomas P. Gallagher, MIAX Chairman and Chief Executive Officer, commented: “Corporate Tax Rate Futures are a unique and innovative product that will play a major role in continuing our futures expansion efforts. This product provides corporations and investors a new tool to manage risk associated with potential changes in corporate tax rates.”

Mark G. Bagan, President and Chief Executive Officer of MGEX, said: “Investors and corporations have limited opportunities to manage the economic impact of changes in tax rates. MGEX is proud to list and clear Corporate Tax Rate Futures that we believe will be invaluable to a variety of market participants including corporations, liquidity providers, hedge funds and equity investors.”