Cboe Global Markets, a leading provider of global market infrastructure and tradable products, and MSCI Inc, a provider of critical decision support tools and services for the global investment community, have signed a licensing agreement that extends and broadens their strategic relationship.
The agreement builds on many years of successful collaboration between the two companies and extends Cboe’s rights to offer options trading on MSCI global indices through to the end of 2031. Significantly, the agreement also expands Cboe’s and MSCI’s relationship, creating opportunities for the companies to work together to pursue other strategic initiatives across capital markets, and combine their complementary strengths and visions to help drive future innovation for market participants globally.
“We have valued our strong partnership with MSCI for many years and are pleased to expand our relationship through this strategic agreement,” says Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets. “Cboe and MSCI share a common vision to help market participants protect capital, transfer risk and generate wealth to create a sustainable financial future. Our expanded relationship with MSCI opens up a world of opportunities for new products, services and solutions, and we look forward to working together to further serve the global investment community.”
The two companies have collaborated successfully to offer options trading on MSCI global indices for many years. Under the agreement, initially signed in 2014, Cboe will continue to have the rights in the U.S. to develop and list index options on the following six MSCI indices: the MSCI EAFE Index (MXEA), MSCI Emerging Markets Index (MXEF), MSCI All Country World Index, MSCI USA Index, MSCI World Index and the MSCI ACWI ex-USA Index.
In addition, the agreement enables Cboe to offer index options, subject to regulatory approval, on four additional MSCI ESG indices: the MSCI Emerging Markets ESG Leaders Index, MSCI EAFE ESG Leaders Index, MSCI USA ESG Leaders Index and the MSCI World ESG Leaders Index.
“This agreement represents a huge innovation for the derivative market,” says Henry Fernandez, Chairman and Chief Executive Officer of MSCI. “It will increase access to products our clients need while helping us build a stronger financial system. It also lays the groundwork for additional collaboration between MSCI and Cboe in the years ahead. We are excited to continue growing our strategic relationship.”
