New product designed to help investors manage risk in emerging markets equities
Montréal Exchange Inc. (MX), Canada’s derivatives exchange, today announced the introduction of a new futures product based on the performance of the FTSE Emerging Markets Index. Scheduled to begin trading on June 13, 2014, the FTSE Emerging Markets Index Futures (MX-EMF) are targeted at a wide range of market participants seeking exposure to emerging markets for hedging, asset allocation, speculative and arbitrage purposes.
“Global investor interest in emerging market equities is again on the rise and with this increased participation comes the need for effective risk management and hedging tools,” said Alain Miquelon, President and CEO, Montréal Exchange and Group Head of Derivatives Markets, TMX Group. “We are proud to add FTSE Emerging Markets Index Futures (MX-EMF) to our spectrum of index derivatives products and bring new investing opportunities in this space to our core Canadian clients as well as our growing international customer base.”
The constituents of the FTSE Emerging Markets Index include large and mid-cap securities from advanced and secondary emerging markets, classified in accordance with FTSE’s transparent Country Classification Review Process. The FTSE Emerging Markets Index provides investors with a comprehensive means of measuring the performance of the most liquid companies in the emerging markets.
Mark Makepeace, CEO of FTSE Group said: “The FTSE Emerging Markets Index covers a broad geographic spectrum across industry sectors, meeting the growing demand from investors looking to access these growth markets. We are delighted that Montreal Exchangehas chosen to licence the FTSE benchmark for its new derivatives contract, which is compiled in line with our transparent methodology and independent governance structure.”
“MX has a proven track record of delivering innovative and flexible products that keep pace with the evolving needs of the marketplace,” added Thomas Kloet, CEO, TMX Group. “This new futures product expands our presence and enhances our profile in key international markets.”
