ICE: The leading venue for MSCI Index Futures
On July 31, the Fed’s decision to cut interest rates for the first time since 2008 marked the beginning of the most volatile period of the year for equity markets. Despite a backdrop of US-China trade tensions and concerns over global recession, the MSCI World NTR USD Index remained relatively close to its all-time high.
These factors have fed rising demand for ICE’s MSCI World Minimum Volatility NTR USD Index futures. An increased number of participants have already traded over US$900mln notional YTD, 22,544 lots up, +228% vs 2018, with open interest reaching US$170mln at the end of August. Launched in February 2014, ICE’s MSCI World Minimum Volatility Index future offers a simple way to de-risk a portfolio ahead of potential turbulent times but maintain an allocation to developed equities.
The MSCI World Minimum Volatility Index is a key benchmark for managed volatility strategies on equities. It is built to have the lowest absolute volatility based on a defined set of constraints. It features a lower Beta, lower volatility and lower cap bias relative to its parent index, the MSCI World NTR USD Index. To learn more about MSCI’s Minimum volatility indices please visit: https://www.msci.com/msci-minimum-volatility-indexes
- ICE’s MSCI Futures franchise ADV up 18% YoY, OI as of end of August in excess of US$120bio
- MSCI EM (BBG code: MESA) ADV up 26% YoY, OI up 16% YoY
- MSCI EAFE (BBG code: MFSA) ADV up 21% YoY, OI up 9% YoY
- MSCI World Min Vol (BBG: WVWA) ADV up 228% YoY, OI up 753% YoY
ICE’s MSCI Futures Factsheet is available here.