ICE set to reduce contract size of NYSE FANG+ Index futures
ICE plans to enhance the NYSE FANG+ Index futures by reducing the contract size to better respond to the needs of a wide range of investors.
Operator of global exchanges and clearing houses and provider of data and listings services Intercontinental Exchange Inc (NYSE:ICE) today unveiled its plans to enhance the NYSE FANG+™ Index futures by reducing the contract size to better match the needs of a wide range of investors.
The contract multiplier, which determines the notional value of the contract, is expected to be reduced to $5 times the index from the current $50, effective September 28, 2020, subject to regulatory approval. With this change, the notional value of each futures contract will be approximately $24,000, or one tenth the current size.
Trabue Bland, President of ICE Futures U.S., explains: “By significantly reducing the size of the contract, we’re making it far more accessible to both retail and institutional investors.”
NYSE FANG+™ Index futures are based on the NYSE FANG+™ Index, 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 another five actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA, Tesla and Twitter. It is calculated and disseminated through the ICE Data Consolidated Feed under the symbol “NYFANG.”