ICE to change name of NYSE FANG+ Index Futures due to new contract size
Contract will be called the MICRO NYSE FANG+™ Index Futures Contract to reflect the lower notional value.
Operator of global exchanges and clearing houses and provider of data and listings services Intercontinental Exchange Inc (NYSE:ICE) will change the name of the NYSE FANG+™ Index Futures Contract in line with plans to change the contract size, which will lower the notional value of the contract. The new name will be the MICRO NYSE FANG+™ Index Futures Contract.
ICE plans to reduce the multiplier for the contract, which determines the notional value of each futures contract, to $5 times the index from the current $50, effective September 28, 2020. With this change, the notional value of each futures contract will be approximately $25,000, or one tenth the current size. The goal of this change is to secure a better match for the needs of a wide range of investors.
MICRO NYSE FANG+™ Index futures are based on the NYSE FANG+™ Index, administered by ICE Data Indices, LLC, and are designed to offer hedging, exposure and the capital efficiency of futures to a select group of highly traded growth stocks of tech-enabled companies. The NYSE FANG+™ Index is equally weighted and includes the five core FAANG stocks – Facebook, Apple, Amazon, Netflix and Google (Alphabet) – plus Tesla and four other actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA and Twitter. It is calculated and disseminated through the ICE Data Consolidated Feed under the symbol “NYFANG.”
