December, 2019
ICE Equity Derivatives Report
December 2019 Highlights
ICE: The leading venue for MSCI Index Futures
2019 was a landmark year for ICE and MSCI as they extended their partnership and collaborated to launch the first futures contracts referencing MSCI’s innovative ESG Leaders and MSCI Climate Change Indices.
ICE’s comprehensive MSCI futures franchise grew to $140 billion notional open interest by year end, proving its unique appeal to buy-side institutions to simply and quickly access different segments of the equity markets.
- Over the course of 2019, ICE’s MSCI futures complex registered a new record of near 55 million lots traded, up 9% YoY, another consecutive annual record for ICE. The total open interest reached 2.17 million lots on the last day of 2019, up 11% YoY
- MSCI Emerging Markets Index Future (BBG code: MESA) continues to be the no.1 traded MSCI derivatives contract globally, setting a new trading record of 999,551 lots on December 16 and a record open interest of 1.47 million lots at year end, up 20% YoY
- MSCI EAFE Index Future (BBG code: MFSA) reached new highs, trading a record 355,230 lots on June 17, surpassing the previous record day set on March 11 2019 of 337,277 lots. Open interest grew by 26% YoY
- ICE is the sole venue to list the MSCI Brazil Index Future (BBG Code: MCBA). 2019 saw investors looking to hedge their Brazilian equities exposure increasingly use the contract, which has grown 88% in volume YoY and open interest increase by 92% YoY, close to $3 billion notional
- ICE launched the MSCI EMU Sector Futures and MSCI ESG Futures in 2019, which have already reached over $2.2 billion notional trading and over $150 million notional trading respectively
- 2019 saw a 25% rise of long open interest from buy-side institutions in our MSCI EM Index futures reported to the CFTC, as they used ICE futures to easily capture the performance of EM equities
MSCI Emerging Market Index Futures Buy-side Open Interest
Single Stock Futures & Options
ICE offers Single Stock Futures and Options on over 800 underlyings covering developed and emerging markets. All our Single Stock Options have full flexibility in terms of options exercise style, delivery, strike price and offer a choice of expiry date out to 5 years. In addition, all contracts have competitive fee caps so investors have certainty on exchange costs. In 2019, Single Stock Options traded over 12.6 million lots and Single Stock Futures traded over 39.1 million lots.
ICE - The home of UK Equity Derivatives
Domestic political uncertainty dominated the UK market in 2019. Brexit, a new Prime Minister and a general election fuelled volatility in the UK equity market.
In 2019 ICE launched several contracts to help investors further manage their UK exposure.
- FTSE 250 Index Options volume jumped with the introduction of a Central Order Book in July, reaching record trading volumes for ICE Futures Europe in H2 2019
- ICE introduced Trade at Index Close (TIC) contracts for the FTSE 100 and FTSE 250 Index Futures, allowing customers to easily trade the cash index close. Over 20k lots have traded across both products
- ICE introduced changes to the FTSE 250 Index Futures, increasing the minimum tick increment to 1.00 and extending the trading hours to 9pm GMT. Non-roll month volume has increased by 49%, Open Interest is up 17% and annual ADV has grown by 9% YoY
- FTSE 100 Index Futures Open Interest up 9% YoY
- FTSE 100 Index Options ADV up 60% in December YoY
- FTSE 100 Index Weekly Options volumes up 14% YoY
- FTSE 100 RDSA Withholding Dividend Index Future Open Interest up 28% YoY to 199k
NYSE® FANG+™: trade the top of the tech
- FANG+ Futures Open Interest up 241% YoY
- FANG+ Futures volume up 22% YoY, 2019 ADV at 1,749 lots
On behalf of ICE we would like to thank customers for their support, and we look forward to a successful 2020.
For more information,
please contact: Equity Derivatives Team
+44 (0)20 7429 4635
equities@theice.com
Volumes
MSCI Index Futures
FTSE 100 Futures
FTSE 100 Options
FTSE 100 RDSA Dividend
Single Stock Options
FANG+ Futures
FTSE 250 Index Futures
FTSE 250 Index Options
FTSE 100 Weekly Options
Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS)”.
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