Intercontinental Exchange, Inc. (NYSE:ICE) today announced the launch of MSCI Index Total Return Futures (TRFs).
ICE’s MSCI® TRFs offer investors a way to gain exposure to MSCI’s flagship indices: MSCI EAFE Index, MSCI Emerging Markets Index, MSCI USA Index and MSCI World Index. The TRF contracts serve as an exchange listed alternative to over-the-counter total return swaps that seek to replicate the performance of MSCI’s indices in a more capital-efficient and transparent way.
The contracts use the underlying U.S. funding rate SOFR (Secured Overnight Financing Rate) which measures the cost of overnight cash borrowing. Contracts are available to trade out the curve to 2033, with quarterly and yearly expiries.
“ICE’s markets account for over 70% of global MSCI futures trading by volume, making ICE the natural home…
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