ICE: The home of UK Equity Derivatives
The performance of the FTSE 100 & FTSE 250 in September was largely flat despite large swings during the month related to both COVID-19 and Brexit negotiations. Volume and OI in these two key benchmarks continue to be strong, in particular the mid cap focused FTSE 250 which saw OI grow 72% month on month in contrast to other national benchmarks across Europe.
September also saw increased activity in Natwest, Barclays and Lloyds stock options. With the dividend cycle uncertain for banks globally, speculation is starting to mount if this cycle will continue into 2021. This dividend uncertainty is also driving volume and OI growth in the FTSE 100 Dividend Index Future with volumes and OI up 139% and 34% respectively.
Contact the ICE Equity Derivative team to find out more about the development of the FTSE franchise, our plans to develop the UK Mid Cap Sector with a focus on the FTSE 250 Futures and Options and also our flexible Single Stock Futures and Options on UK, European and Emerging Market stocks. More information can be found here.
NYSE FANG+ Index Futures
On Sept. 28, the NYSE FANG+™ Index futures was reduced to one tenth of the current size and renamed to MICRO NYSE FANG+™ Index Futures.
Changes to the contract include:
- The contract multiplier is now $5.00 times the index (from the current $50.00 times the index)
- The minimum price fluctuation is now 0.20 index points, or $1.00 per contract
- OI was converted into the new smaller contract terms by a 10-to-one ratio
The FANG+ Index has increased 140% since bottoming out in mid-March. Given this dramatic rise in the index, the new, smaller contract size appeals to a more broad based selection of participants. Flexibility is enhanced and multiple market makers are ensuring a liquid trading environment.