CBOE signs exclusive options deal with MSCI

CBOE will list options based on MSCI indexes in the first quarter of 2015 after striking a deal to ensure it will be the only options exchange in the US to offer the contracts.

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CBOE will list options based on MSCI indexes in the first quarter of 2015 after striking a deal to ensure it will be the only options exchange in the US to offer the contracts.

MSCI has been the main challenger to longer-established indices in the market and along with providing the basis for around 650 ETFs, there is now around US$9.5 trillion linked to MSCI indices.

CBOE already lists options based on the S&P 500 and its own Volatility Index, known as the VIX.

The deal with MSCI will give investors access to two of the provider’s most popular indexes - the MSCI EAFE Index and the MSCI Emerging Markets Index, along with four others.

The range of contracts allows market participants to hedge their non-US equity portfolio exposures.

"CBOE is pleased to be the only U.S. exchange for trading options on MSCI Indexes," said CBOE Holdings CEO Edward Tilly.

"This agreement aligns two of the world's leaders in indexing. MSCI's extensive experience in creating global benchmark indexes and CBOE's leadership and innovation in developing and trading successful index options will make for a dynamic partnership. We look forward to working with MSCI to bring new index options products to a growing worldwide user base."

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