ICE Launches MSCI MarketAxess Futures to Enhance Corporate Bond Trading Landscape

ICE Launches MSCI MarketAxess Tradable Corporate Bond Index Futures to Enhance Bond Market Trading

Intercontinental Exchange, Inc. (ICE) announces the introduction of MSCI® MarketAxess Tradable Corporate Bond Index futures, a significant development aimed at improving the trading landscape for corporate bonds. This new suite of futures contracts is meticulously designed to provide benchmarks for the corporate bond market, developed in collaboration with MSCI and MarketAxess. The indices focus on sector and credit allocation, ensuring minimal tracking errors while effectively replicating credit market performance. The four distinct futures contracts correlate with the MSCI MarketAxess USD Investment Grade (IG), USD High Yield (HY), EUR IG, and EUR HY Tradable Corporate Bond Indices, marking a strategic expansion into a vital area for institutional investors.

The launch arrives amidst a notable surge in client adoption of credit futures, as pointed out by Antony Harden from Goldman Sachs, who notes a growing demand for more sophisticated tools in managing corporate bond portfolios. Caterina Caramaschi from ICE reinforces the significance of this innovation, emphasizing that ICE currently controls over 70% of the global MSCI futures trading volume in equity markets. This dominant position underscores ICE's commitment to enhancing the trading environment for corporate bonds, enabling better portfolio management and risk exposure for investors.

The collaboration merges MSCI’s index methodologies with MarketAxess' liquidity metrics, leveraging ICE's advanced trading platform. This integration aims to bolster trading efficiency and liquidity in the corporate bond market, a crucial factor for institutional clients. George Harrington from MSCI and Kat Sweeney from MarketAxess highlight the potential of these credit futures in facilitating better market liquidity and providing essential tools for managing credit exposure. The development of these futures not only enriches ICE's extensive portfolio of MSCI futures products—already including MSCI ACWI and MSCI ESG—but also reaffirms the company’s ongoing commitment to innovation in the financial services sector.

In addition to the immediate benefits for institutional investors, the introduction of these futures contracts reflects a broader trend in the financial markets, where sophisticated instruments are increasingly necessary for effective portfolio management. As the demand for innovative financial products continues to rise, ICE stands poised to lead the charge in creating solutions that address the evolving needs of the market.

This strategic expansion into the corporate bond futures market aligns with ICE's mission to enhance the overall trading landscape, providing investors with the tools needed for successful credit management in an increasingly complex financial environment. The collaboration with MSCI and MarketAxess marks a significant step forward, positioning ICE to meet the growing demands of investors seeking more robust and efficient ways to navigate the corporate bond market.