Miami International Holdings (MIH) and Bloomberg Index Services have entered into a licensing agreement to develop a suite of index futures, options on futures, and cash options products.
Thomas Gallagher
The offering is based on Bloomberg Indices’ portfolio of benchmarks and combines MIH’s expertise in operating the relevant exchanges with Bloomberg’s advanced technological capabilities to “bring much-needed competition to the equity index derivatives industry,” said Thomas Gallagher, chair and chief executive of MIH.
In the first instance, MIH will offer several equity index products to be exclusively listed and traded on MIH’s exchanges, subject to regulatory approval.
Read more: Miami International Holdings completes acquisition of Dorman Trading
“Bloomberg Indices has invested considerable resources in developing a suite of innovative equity benchmarks covering a broad range of geographies, sectors and industries using our rules-based and transparent methodology,” said Dave Gedeon, chief executive of Bloomberg Indices.
“Our collaboration with MIH to offer financial derivative products based on Bloomberg equity indices will provide the global investment community with a new range of innovative tools to help manage its equity risk exposure.”
Bloomberg’s suite includes a complete set of global equity index families which cover more than 99% of the eligible free float market cap – specifically across 48 developed and emerging markets.
Its equity indices are available in global, regional, country, and sector exposures and across various currencies and returns for clients.
Gallagher said: “Our collaboration with Bloomberg Indices will provide the financial industry with access to a broad range of futures and options products designed to meet the needs of both retail and institutional equity investors.
“We are very encouraged with the long-term potential for our collaboration, particularly given the depth and breadth of Bloomberg’s global distribution capabilities and the growing trend of asset managers, funds, and other investors benchmarking to Bloomberg indices.”