Nasdaq OMX PHLX, a US options bourse, has launched new index options based on popular MSCI benchmarks that track the performance of international stocks.
The new products are based on index provider MSCI’s emerging market and EAFE indices and, according to Nasdaq OMX, are the first and only cash settled options available in the US based on these benchmarks.
The US exchange operator said the new index options will give market participants the ability to employ new trading strategies for cash-settled index options and gain more hedging opportunities.
"The launch of these options provides institutional investors with yet another important tool for managing their portfolios benchmarked to MSCI equity indices,” said Baer Pettit, head of the MSCI index business.
The MSCI Emerging Markets index covers 800 stocks across 21 markets, covering large- and mid-cap stocks in the Americas, Europe, Middle East, Africa and Asia. The MSCI EAFE index tracks developed market equity performance in 22 countries outside of the US, including Europe, Australasia and the Far East.
"Launching exchange-traded options on MSCI's widely used index families will provide our growing US options market participants, including retail investors, opportunities for additional trading strategies and improved price discovery on our world-class electronic trading system,” said Tom Wittman, senior vice president and head of US options at Nasdaq OMX.
Nordic ETFs surge
Meantime, Nasdaq OMX Nordic has reported volumes on the domestic stock exchanges it operates in Stockholm and Helsinki increased 68.3% year-on-year. A total of €88 million in ETFs was traded in Sweden and Finland last month, compared to €52 million in April 2011.