-Index futures on MSCI USA, EM and EAFE Indices to begin trading on NYSE Liffe US in Q3 2009-
NYSE Liffe US to Offer a New Suite of Stock Index Futures Products Based on MSCI Indices
-Additional products to follow before year end-
New York, May 26, 2009 – NYSE Liffe US, the new U.S. futures exchange of NYSE Euronext (NYX), today announced that it has signed a license agreement with MSCI Inc. (NYSE: MXB), a leading provider of investment decision support tools worldwide, to introduce a suite of domestic and international index futures products built on a range of MSCI Equity Indices. This unique and extensive portfolio of MSCI linked stock index futures will provide broad and efficient market coverage of U.S. and European equity markets, including style and sector exposures as well as coverage of flagship MSCI indices such as the MSCI Emerging Markets (EM), MSCI EAFE, and MSCI BRIC Indices.
These products represent NYSE Liffe US’ entry into a new asset class beyond the initial gold and silver contracts it opened with in September 2008. MSCI, which calculates over 120,000 equity indices daily, introduced its global equity benchmarks over 40 years ago. Today, the indices are recognized and used by leading asset managers around the world.
“This license agreement marks the beginning of a substantial commitment between two industry leaders in MSCI and NYSE Euronext to develop innovative products serving the needs of the global investment community,” said Duncan L. Niederauer, CEO, NYSE Euronext. “This exciting set of products fits strategically with NYSE Liffe US’ evolving value proposition and our commitment to building a premier US futures exchange.”
Henry Fernandez, Chairman and CEO, MSCI Inc., said, “We are very excited by this development. Over the last 40 years MSCI has built a successful franchise and an internationally recognized index brand. Our market-leading range of global investable and replicable benchmark indices is now an integral part of the investment processes of thousands of institutional investors around the world. By licensing a global exchange group like NYSE Euronext, many more investors will be able to access the MSCI Equity Indices via the futures marketplace.”
“In addition to the tremendous liquidity available on the NYSE Arca platform in ETFs based on MSCI indices, and combined with the margin efficiencies available at OCC, the MSCI family of indices are a natural and exciting core product set for NYSE Liffe US,” said Thomas F. Callahan, NYSE Euronext Executive Vice President, Head of U.S. Futures. “Adding futures products based on the MSCI EM and MSCI EAFE Indices to NYSE Liffe US is the first of many innovative futures products that we plan to introduce in the months ahead. NYSE Liffe US delivers credibility and innovation along with the liquidity, functionality and cost effectiveness that our clients demand.”
“We are delighted to have licensed NYSE Liffe US for the creation of futures contracts based on the MSCI Equity Indices,” said David Brierwood, Chief Operating Officer, MSCI Inc., “The availability of derivatives based on MSCI indices provides investors around the world with flexible tools to more effectively manage their equity portfolios.”
NYSE Liffe US launched trading in September 2008 as a fully electronic, liquid market for 100 oz. gold futures, 5,000 oz. silver futures, options on gold and silver futures, and mini-sized 33.2 oz. gold and 1,000 oz. silver futures. NYSE Liffe US utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies.
About MSCI Inc.
MSCI Inc. is a leading provider of investment decision support tools to investment institutions worldwide. MSCI Inc. products include indices and portfolio risk and performance analytics for use in managing equity, fixed income and multi-asset class portfolios.
The company’s flagship products are the MSCI International Equity Indices, which include over 120,000 indices calculated daily across more than 70 countries, and the Barra risk models and portfolio analytics, which cover 56 equity and 46 fixed income markets. MSCI Inc. is headquartered in New York , with research and commercial offices around the world. For further information on MSCI, please visit the web site at www.mscibarra.com
About NYSE Euronext
NYSE Euronext (NYX) is the world’s most diverse exchange group, offering a broad and growing array of financial products and services in Europe and the United States that include cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions. With over 8,000 listed issues globally, NYSE Euronext's equities markets -- the New York Stock Exchange, Euronext, NYSE Arco, and NYSE Amex -- represent nearly 40% of the world's cash equities trading volume, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, the leading European derivatives business and the world’s second largest derivatives business by value of trading. NYSE Euronext offers comprehensive global commercial technology, connectivity, and market data products and services through its innovative trading solutions unit, NYSE Technologies. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit: www.nyx.com
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