NYSE To Be Sole Provider Of MSCI-Tied Futures

July 12, 2010

The NYSE moves in on the CME, with an exclusive agreement for MSCI to provide the Big Board’s futures unit with indexes.

NYSE Liffe U.S., the futures exchange of NYSE Euronext, won exclusive rights to trade futures tied to MSCI stock indexes starting next summer when the index provider ends its relationship with the parent of the Chicago Mercantile Exchange. Terms weren’t disclosed.

MSCI’s current license agreements with CME Group Inc. covering futures on the MSCI EAFE and the MSCI Emerging Markets indexes are set to expire in June 2011. At that time, the two indexes and others associated with MSCI benchmarks will be listed on the NYSE Liffe U.S., NYSE Euronext said in a press release.

The NYSE is hoping the partnership with MSCI will give its growing futures platform more traction. Investors will have until June 17, 2011 to transition all trading and open interest in all MSCI-linked futures contracts currently trading at the CME to the new exchange.

“In the coming months, we will continue to expand our offering by introducing additional contracts based on MSCI indices,” Thomas Callahan, NYSE Liffe U.S. chief executive officer, said in the press release.

“We anticipate that customers who need to move open interest onto our exchange will want to begin that process well in advance of the June 2011 deadline, and we’ll be working closely with these firms to support them throughout the process.”

The NYSE first launched its futures platform Liffe U.S. in 2008. Last year it listed its first group of equities index futures linked to MSCI indexes.


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