Intercontinental Exchange plans to introduce MSCI Equity Index Futures contracts on ICE Futures Abu Dhabi (IFAD) starting February 24, 2025, pending regulatory approval. The launch introduces a new asset class to the exchange and enhances access to Gulf and Indian equity markets.
The contracts will include Micro MSCI GCC Countries Index Futures, Micro MSCI Qatar Index Futures, Micro MSCI UAE Index Futures, and Micro MSCI India Index Futures. All contracts will be denominated in US dollars, providing investors with tools to access equity markets in these regions and manage related risks.
Market liquidity and hedging solutions
Nabeel Albloushi, Head of Markets and Securities Services, HSBC Middle East, North Africa, and Turkiye, said, “The introduction of the new index futures marks a transformative step in advancing financial markets in the region and strengthening the connectivity with global capital flows. These products will support increasing market liquidity, provide hedging solutions, and empower clients locally and globally to access and manage risk.”
Adam Kamyar, Head of MENA & APAC, Winton Capital, commented, “We welcome ICE Futures Abu Dhabi’s expansion into regional stock indexes and further development in regional derivatives markets. These new instruments will further support the growing participation of quantitative investment strategies in MENA markets and the development of innovative investment products.”
“Opportunities for strategic trading and risk management in equity markets”
The MSCI UAE, Qatar, and GCC Index Futures aim to bolster the region’s financial infrastructure, while the MSCI India Index Futures highlights the significance of the Middle East-Asia economic corridor. The new contracts cater to both local and international investors, offering opportunities in emerging and developed markets.
George Harrington, Managing Director at MSCI, said, “We are excited to team up with ICE to introduce equity index futures, leveraging MSCI’s trusted index methodologies and ICE’s leading trading infrastructure. This collaboration marks an important step forward in providing the market with innovative tools for equity trading and underscores our commitment to growing markets in the Middle East.”
Gary King, President of ICE Futures Abu Dhabi, stated, “ICE is building on its energy offering on ICE Futures Abu Dhabi to serve investor demand for transparent, standardized, and flexible access to regional Gulf equity markets. With this offering tailored for the Gulf region, ICE is connecting local and global investors, providing enhanced opportunities for strategic trading and risk management in equity markets and broadening ICE Futures Abu Dhabi to this new asset class.”
ICE Futures Abu Dhabi’s new index futures extend the exchange’s capabilities beyond its existing energy products. ICE is already home to liquid markets for MSCI ACWI, MSCI EAFE, MSCI Emerging Markets, MSCI ESG, and MSCI Climate indexes, accounting for over 70% of all MSCI Futures trading by volume. In 2024, the average daily volume for ICE’s MSCI complex equaled an estimated $13.6 billion in notional value.
