June, 2020
ICE Equity Derivatives Report
June 2020 Highlights
ICE: The leading venue for MSCI Index Futures
RJune saw many economies engage in the gradual reopening of businesses while attempting to maintain control of COVID-19 infection rates. Equity markets trended higher last month despite signs that global recovery may take longer than initially planned. The MSCI Emerging Markets Index closed 7% higher than May and the MSCI EAFE Index was up 3.2% over the same period.
With the June roll for the main MSCI contracts taking place in the very last days before expiry, ICE saw a record 1,658,925 lots traded on ICE Futures U.S. across the MSCI futures complex on June 15 vs. the previous record of 1,644,733 lots.
- ICE’s MSCI Index Futures YTD ADV is up 39% YoY to ~294,000 lots with a combined total Open Interest (OI) up +4% YoY at over 1.93 million lots. ICE open interest market share in MSCI Index Futures continues to grow and stood at 60% (notional open interest $) and 53% (number of lots) at the end of June.
- MSCI EAFE Index Futures (Ticker MFSA) June ADV of 92,000 up 30% YoY, OI of 451,000 up 47% YoY. On June 15, a record 446,050 ICE MSCI EAFE futures contracts traded on ICE Futures U.S., surpassing the previous record of 436,428 lots.
- MSCI Emerging Markets Index Futures (Ticker MESA) June ADV of 275,000 up 12% YoY, OI of 1.19 million lots.
- MSCI AC Asia ex Japan (Ticker SCAA) June ADV of 2,295 lots up 80% YoY, OI of 22,350 lots up 60% YoY.
- ICE MSCI ESG Leaders Index Futures - OI continues to grow with over $175 million in notional value, making them the most popular MSCI ESG Index Futures globally. ICE’s Liquidity Providers continue to support the contracts, providing on-screen prices during the European and U.S. trading day.
- ICE further increased its cooperation with market participants to promote intraday price formation during Asian trading hours.
- ICE offers a comprehensive list of futures contracts covering the Asia-Pacific region. Contracts such as the MSCI EM Asia Futures, MSCI China Free Futures, MSCI India Futures, MSCI AC Asia ex. Japan Futures and MSCI Pacific Futures, which can be traded alongside the largest MSCI futures contracts, the MSCI Emerging Market and EAFE futures. This breadth of contracts enables market participants to fully benefit from margin offsets, therefore maximizing their capital efficiency.
ICE: The home of UK Equity Derivatives
U.K. Equities saw a mixed performance in June with the pandemic still haunting the markets and uncertainty in investor confidence. This uncertainly is compounded by Brexit negotiations with the year-end deadline for a trade deal looming and negotiations increasingly politicized; a no deal Brexit cannot be ruled out. This has weighed on the FTSE 100 Index, which has been the worst performer of the major developed stock indices year on year.
June also saw the six monthly FTSE 100 rebalance where airline stocks. Easyjet and Meggit were removed from the main blue chip index and replaced by Kingfisher (Owner of B&Q) and Homeserve, reflecting the change in the makeup of the economy caused by COVID-19.
The ICE FTSE franchise has the full set of products needed for investors to manage their U.K. Equity exposure, offering FTSE 100 and 250 Futures and Options, FTSE 100 Weekly Options, FTSE 100 Dividend Index Futures and FTSE 100 & 250 Trade at Index Close Futures (TIC). In June we saw strong trading activity in the FTSE 100 Dividend Index futures with ADV and open interest up 189% and 33% respectively vs. last year. Contact the ICE Equity Derivative team to find out more about the development of the FTSE franchise and our plans to develop the U.K. Mid Cap Sector with a focus on the FTSE 250 Futures and Options.
In addition to the MSCI and FTSE Index Futures and Options, ICE also offers Single Stock Futures and Options on U.K., European and Emerging Market stocks. Learn more.
Volume
MSCI Index Futures
FTSE 100 Futures
FTSE 100 Options
FTSE 100 RDSA Dividend
Single Stock Options
FTSE 250 Index Futures
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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