CME and MSCI Barra, a provider of benchmark indices and risk management analytics, have signed an agreement to allow CME to offer E-mini futures on the MSCI Emerging Markets Index. The contact is expected to start trading on October 22.
The MSCI Emerging Markets Index, is a free float-adjusted market capitalization index containing over 800 securities of the largest and most liquid companies from 25 emerging market countries.
As of June 2007, the MSCI Emerging Markets Index consisted of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.
Terry Duffy, CME Group’s executive chairman, says: "The global emerging markets sector is one of the top performing asset classes this decade. Futures on this highly tradable and volatile index will allow our customers around the world to hedge their risk or gain exposure to the emerging markets with virtually no counterparty risk."
MSCI Emerging Markets Index futures will be available CME’s Globex electronic trading platform. It is cash settled and will trade on a March quarterly cycle with a $5.00 tick size.