NASDAQ OMX launches new options based on MSCI Indexes

NASDAQ OMX launches new options based on MSCI Indexes

 

01/05/2012

The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) announced today the launch of MSCI Emerging Markets (Symbol: EEMIQ) and MSCI EAFE (Symbol: EAFEQ) Index Options, which will be the latest U.S. options listings offered at NASDAQ OMX PHLX. They are the first and only listed cash-settled options available in the U.S. on these major global indexes.

Beginning today, these listings are available to investors who seek direct exposure to a previously untapped market with a cash-settled options offering that exactly tracks the performance of the index. NASDAQ OMX PHLX market participants will be among the first to trade this offering and may use MSCI EM and MSCI EAFE Index Options to track the performance of the index, employ additional trading strategies for cash-settled index options and gain more opportunity to hedge.

The MSCI Emerging Markets and MSCI EAFE Indices are free-float adjusted market capitalization indexes focused on emerging and developed markets. With over 800 securities in 21 markets, the MSCI Emerging Markets Index tracks equity market performance in emerging markets, covering large and mid-cap securities in all industries in regions like the Americas, Europe, Middle East, Africa and Asia. The MSCI EAFE Index is a prominent benchmark in the United States, measuring international equity performance. The Index is comprised of stocks from 22 developed markets outside of North America, including Europe, Australasia and the Far East.

Baer Pettit, Managing Director and Head of the MSCI Index Business, said, "We are delighted to have licensed NASDAQ OMX PHLX for index options based on the MSCI Emerging Markets and MSCI EAFE Indices."

He added, "The launch of these options provides institutional investors with yet another important tool for managing their portfolios benchmarked to MSCI equity indices."

Tom Wittman, Senior Vice President and Head of U.S. Options at NASDAQ OMX, said: "Launching exchange-traded options on MSCI's widely used index families will provide our growing U.S. options market participants, including retail investors, opportunities for additional trading strategies and improved price discovery on our world-class electronic trading system."

He added, "NASDAQ OMX is focused on developing a product suite with options and futures trading tools that improve the quality of our customer's trading experience and maintain our competitive edge in the derivatives space."