CBOE Holdings, Inc (NASDAQ:CBOE) today announced that it plans to launch options on the FTSE Emerging Index on September 26, 2016. The FTSE Emerging Index is a market-capitalization weighted index representing the performance of large and mid-cap companies from advanced and secondary emerging markets.
The FTSE Emerging Index (Ticker: FTEM) includes approximately 972 securities from 22 countries, as of August 31, 2016, and covers a range of industries, from commodities to banking to technology. The index is derived from markets within the FTSE Global Equity Index Series (GEIS), which gives investors a comprehensive way to measure the performance of the most liquid companies in the global emerging markets.
CBOE’s listing of options on the FTSE Emerging Index is part of a licensing agreement between CBOE and London Stock Exchange Group (LSEG). The deal made CBOE the exclusive U.S. provider of cash-settled index options on more than two dozen LSEG-owned FTSE Russell indexes, and also provided for the two companies to collaborate on the development of additional index options products and investor education globally.
“We are pleased to expand our FTSE-based global offerings with the launch of these new options on the FTSE Emerging Index, which give both our domestic and international customers the ability to trade and hedge exposures to an interesting and often volatile segment of the global equity marketplace.”
– CBOE Holdings CEO Edward T. Tilly.
The FTSE Emerging Index is a market-capitalization weighted index representing the performance of large and mid cap companies in Emerging Markets. The index is comprised of approximately 972 securities from 22 countries, and derived from the FTSE Global Equity Index Series (GEIS), which covers over 7,400 securities in 46 different countries and captures 98% of the world’s investable market capitalization.
Position and Exercise Limits:
The position limit is 25,000 contracts on the same side of the market, with no more than 15,000 contracts in the near term expiration month and the exercise limit is 15,000 contracts.
CBOE listed options on the FTSE 100 and the FTSE China 50 indexes in March 2016.
For full details on the contract click here.